Trading Risk Calculator
Good traders don't ask "how much can I win?" first. They ask "how much can I lose — and can I survive it?" These three calculators answer that before you press buy.
Trading mein jeetne wala woh nahi jo har baar sahi ho — woh hai jo galat hone par chhota nuksaan le aur tikka rahe. Ek trade mein account ka 1–2% se zyada daav mat lagao. 50% doob gaya to wapas aane ke liye 100% kamaana padta hai — isliye pehle bachao, phir kamao.
1 · How big can this trade be?
2 · What does a losing streak do?
3 · Does my system really make money?
What this tool does
- Position size — takes the money you are willing to lose (account × risk %) and divides it by the gap between entry and stop-loss. That is how many units you can buy so that, if the stop is hit, you lose exactly your planned amount.
- Losing streak — shows your account after each loss in a row, and the gain you would then need just to get back to the start.
- Expectancy — the average result per trade over many trades, after costs, and the win rate you need just to break even.
When to use it
- Before every single trade — position size is not a one-time setting.
- Before you increase your risk "because you're on a good run".
- After 30–50 trades in your journal, to check if your system has a real edge.
How to read the answer
In part 1, if the position value is larger than your account, you would need leverage (borrowed money) to take the trade. That is a warning, not a green light. In part 2, compare 1% and 5% risk: the difference after ten losses is the difference between a bad month and a finished account. In part 3, a negative number means the more you trade, the faster you lose — fix the system before you trade more.
What it cannot tell you
- It gives no buy or sell signals and says nothing about any market or share.
- Prices can jump past your stop-loss (gaps, news, weekends) — real losses can be bigger than planned.
- Your past win rate does not promise the future one.
- It is not financial advice. Trade only with money you can afford to lose completely — never with savings for rent, debt or emergencies.
Related reading
FAQ
What is the 1% rule in trading?
Never risk more than 1% (some say 2%) of your account on a single trade. Risk is the money you lose if the stop-loss is hit, not the size of the position.
How do I calculate position size?
Money at risk ÷ distance between entry and stop-loss. Risk 50 with a stop 2 below entry = 25 units.
Why is losing 50% so dangerous?
You then need +100% just to get back. −10% needs about +11%, −50% needs +100%, −75% needs +300%.
What is trading expectancy?
(Win rate × average win) − (loss rate × average loss) − costs. If it is negative, more trades only means losing faster.
Does this calculator tell me what to trade?
No. It only does the risk maths. Most short-term traders lose money; only trade with money you can afford to lose completely.