$35,000 Position Size
Risking 7% of a $50,000 account with a 10% stop-loss gives a position size of $35,000.
Position Size
$35,000
Risking $3,500
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 7% risk on $50,000?
A position size of $35,000, risking $3,500.