Position size and risk/reward calculator
Calculates the amount at risk and the risk/reward ratio from account size, entry and stop-loss level. The calculation assumes your stop-loss is filled at the level you chose; price gaps, slippage and commissions can increase the loss. Results are for information only and are not investment advice.
How does the calculation work?
Risk amount
With a balance of ₺100,000 and a risk percentage of 2%, the amount at risk on this trade is ₺2,000.
Stop-loss distance
With an entry at ₺312 and a stop-loss at ₺296, the risk per unit is ₺16.
Number of units
₺2,000 / ₺16 = 125 lots. This hypothetical calculation excludes slippage, commissions and price gaps.
Example scenarios
Example prices are not current market quotes; enter your own levels.
Trade inputs
Calculated position
Long (buy)Stop-loss and target range
Position details
- Risk per unit
- ₺16 (-5.13%)
- Target distance per unit
- ₺40 (+12.82%)
- Risk/reward threshold
- 1:2 or higher
The selected risk percentage is a personal assumption; the results do not guarantee a loss limit and are not a trade suggestion.
Formula and calculation steps
1. Risk amount
Risk amount = Balance × (Risk % / 100)
₺150,000 × (2% / 100) = ₺3,000
2. Number of units
Units = Risk amount / |Entry - Stop-loss|
₺3,000 / ₺16 = 187 lots
About the position size calculator
Position size determines how many shares, lots or units to take in a trade so that the amount lost if the trade goes against you is limited in advance. The calculation uses the account balance, the risk percentage, the entry price and the stop-loss level.
Why is it based on the stop-loss distance?
The number of units is found by dividing the risk amount by the distance between entry and stop-loss. The wider the distance, the fewer units; the narrower, the more. Shares on Borsa Istanbul trade in whole units, while crypto can trade in fractions, so the tool offers a whole lot or a fractional quantity option. The calculation assumes you can exit at the stop-loss price; price gaps and slippage can make the actual loss larger than intended.
The one and two per cent rules
A common approach to position management is to put only a small part of the account balance at risk on any single trade. You choose the risk percentage yourself. A run of losses still reduces capital, and the rule does not protect against any particular outcome.
Risk/reward ratio
The risk/reward ratio compares the possible gain at the target with the possible loss at the stop-loss. It says nothing about whether the target or the stop-loss will be reached first; it only compares the size of the two scenarios. When setting target and stop-loss levels, you can also look at the levels from the pivot point calculator.
Leveraged trades
With a leverage input, the calculation shows the margin required and a simple liquidation scenario. Leverage, maintenance margin, platform rules and price gaps change the loss actually incurred. The liquidation level shown is an approximate scenario based on the fixed maintenance margin assumption stated in the tool.