Calculators Position Size Calculator
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Position Size Calculator

Find the exact number of shares or lots to buy based on your capital and risk tolerance.

%
Risk Amount (₹)
Stop Distance
Shares to Buy
Position Value (₹)
Capital Used (%)
Max Loss (₹)
How Position Sizing Works

Position sizing ensures no single trade can cause catastrophic damage to your account. The 1% Rule is the standard — never risk more than 1% of capital on one trade.

Risk Amount = Capital × Risk%
Stop Distance = Entry − Stop Loss
Shares = Risk Amount ÷ Stop Distance

Example: ₹5,00,000 capital at 1% risk = ₹5,000 max loss. Entry ₹1,000, Stop ₹950 (₹50 distance). Shares = ₹5,000 ÷ ₹50 = 100 shares.

About This Calculator

Position sizing is the single most important risk management skill in trading — more critical than your entry strategy. The Position Size Calculator helps NSE traders determine exactly how many shares or futures lots to buy based on their account size, risk tolerance, entry price, and stop loss level. Without proper position sizing, even a winning strategy can blow up an account during a losing streak. The standard rule used by professional traders is the 1% Rule — never risk more than 1% of your total capital on a single trade. This means a trader with ₹5,00,000 capital risks a maximum of ₹5,000 per trade regardless of how confident they feel about the setup. Applied consistently across hundreds of trades, the 1% rule ensures that even a run of 10 consecutive losses only drawdown the account by 10% — fully recoverable. On NSE, position sizing applies equally to equity delivery trades, intraday MIS trades, NIFTY futures, and BANK NIFTY options. The formula automatically adjusts the number of shares based on the distance between your entry price and stop loss — wider stops mean fewer shares, tighter stops mean more shares, but the rupee risk per trade stays constant.

Formula
Risk Amount = Capital × Risk % Stop Distance = Entry Price − Stop Loss Price Shares = Risk Amount ÷ Stop Distance Position Value = Shares × Entry Price
Worked Example
A trader with ₹5,00,000 capital uses the 1% risk rule (₹5,000 risk per trade). They identify a setup on HDFC Bank at ₹1,600 with a stop loss at ₹1,560 (₹40 below entry). Shares = ₹5,000 ÷ ₹40 = 125 shares Position Value = 125 × ₹1,600 = ₹2,00,000 (40% of capital deployed) Maximum loss if stopped out = 125 × ₹40 = ₹5,000 = exactly 1% of capital If the stop were tighter at ₹1,580 (₹20 distance), the position would double to 250 shares at the same risk.
Frequently Asked Questions