$12,000 Position Size
Risking 6% of a $10,000 account with a 5% stop-loss gives a position size of $12,000.
Position Size
$12,000
Risking $600
How This Works
This determines how large a position to take so that if your stop-loss is hit, you lose only your predetermined risk percentage of your account — a core risk-management practice for consistent trading.
Formula
Position Size = (Account × Risk%) ÷ Stop-Loss%
Example
A $10,000 account risking 1% per trade with a 2% stop-loss distance gives a $5,000 position size ($100 at risk).
Frequently Asked Questions
How much should I trade with a 6% risk on $10,000?
A position size of $12,000, risking $600.