FREE TOOL · MARKET DEKHO
Position Size Calculator
Work out how many shares or units fit a risk limit you choose: the quantity for which a move from your entry price to your exit price costs no more than a set percentage of your capital. The idea is to decide the loss you can accept first and let that set the quantity.
Illustrative only. Everything is calculated in your browser and nothing you type is sent anywhere. Not investment, tax or legal advice.
How the position size calculator works
Position size = (capital × risk %) ÷ |entry price − exit price|, rounded down to a whole share, or to a whole lot if you enter a lot size.
The idea is to fix the loss you can accept before the trade and let the price distance decide the quantity, instead of the other way round. It does not guarantee the exit price: fast markets and gaps can fill beyond it. Margin, charges and taxes are not included.
Worked example
With ₹5,00,000 of capital and a 1% risk limit, the most you accept losing is ₹5,000. An entry at ₹200 and an exit price of ₹190 puts ₹10 of risk on each share, so the size is ₹5,000 ÷ ₹10 = 500 shares. That position is worth ₹1,00,000, or 20.00% of capital, and reaching the exit price would cost ₹5,000.
Frequently asked questions
What is position sizing?
Choosing how large a position to take so that a planned loss stays within a limit you set in advance.
What risk percentage should I use?
There is no single answer, and Market Dekho does not suggest one. Many people use small fractions of capital per trade; the right figure depends on your finances and tolerance.
Does a smaller position make a trade safer?
It limits the rupee loss at a given exit price. It does not change the chance of the price reaching that level.
Does this work for futures and options?
Enter the lot size to round to whole lots. Margin rules and option premium behaviour are not modelled.
Related
Educational tool, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Results depend on the numbers you enter and on assumptions stated above.