$300 Position Size
Risking 12% of a $500 account with a 20% stop-loss gives a position size of $300.
Position Size
$300
Risking $60
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 12% risk on $500?
A position size of $300, risking $60.