Free crypto tool

Position Size Calculator

Size every trade from a fixed account risk. Enter your stop-loss and risk it back into the right position size.

Risk-based sizing keeps every loss the same size. Otomato alerts you when a position moves against you toward your stop.

Position size

$2,000

Risking $100 (1% of account)

Units

0.6667

Stop distance

5.00%

Implied leverage

0.2x

Alert me at my stop or target

How the position size calculator works

Good risk management starts by deciding how much you are willing to lose on a trade, not how much you hope to make. This position size calculator takes your account size and risk per trade to get a dollar risk, then divides it by the distance from your entry to your stop-loss: risk $ ÷ stop distance % = position size.

The tighter your stop, the larger the position you can hold for the same dollar risk, which is why stop placement and sizing belong together. The implied leverage tells you how much leverage the position needs given your margin; if it looks uncomfortably high, widen the stop or lower the risk.

Sizing is only half the job, the other half is honouring the stop. Otomato monitors your open positions and alerts you as price approaches the levels you care about.

The complete guide

Size from risk, not from conviction

The professional approach to position sizing starts with a question most beginners skip: how much am I willing to lose if this trade is wrong? Once that dollar amount is fixed, the position size follows mechanically from where your stop-loss sits. This keeps every loss the same size, so no single trade can blow up the account.

The formula is risk dollars divided by the percentage distance to your stop. Risk $100 with a stop 2% away and you can hold a $5,000 position; move the stop to 1% and the same $100 risk supports a $10,000 position.

How much to risk per trade

Most disciplined traders risk 1% to 2% of their account on any single trade. At 1%, it takes a long, unlucky streak to do real damage, which keeps you in the game long enough for your edge to play out.

  • Tighter stop, larger position for the same dollar risk.
  • Wider stop, smaller position, but more room to breathe.
  • The implied leverage shows how much leverage the position needs; if it is uncomfortably high, widen the stop or lower the risk.

Sizing only works if you honour the stop

A perfect position size is meaningless if you move or ignore the stop when price gets close. Otomato monitors your open positions and alerts you as price approaches the levels you set, so you act on your plan instead of your emotions.

Frequently asked questions

How do I calculate position size from risk?
Decide how much of your account you are willing to lose on the trade (for example 1%), then divide that dollar risk by the percentage distance from your entry to your stop-loss. Risk $ ÷ stop distance % = position size. This keeps every trade risking the same fixed amount regardless of where your stop sits.
What is a good risk per trade?
Many traders risk 1% to 2% of their account per trade, so a losing streak does not wipe them out. The tighter your stop, the larger the position you can take for the same dollar risk, which is why stop placement and sizing go together.
How does leverage relate to position size?
Position size is set by your risk and stop, not by leverage. Leverage is just the tool that lets a small margin control that position, so the calculator shows the implied leverage the position needs. If it is uncomfortably high, widen the stop or lower the risk.

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Trade the plan, let Otomato watch it

Otomato detects your positions and alerts you as they move toward your stop or liquidation, so you can act on your rules, not your emotions.

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