# Position size calculation

Hi all,

I am new here. I do have searching many times but can not find any information.

Can you show me how or where I can find the position size calculator?

I need a tool/software to manage risk like this:

If my account balance is 100k and I want to risk 1% (1k) on trading EUR/USD.

I buy at 1.2200 - stoploss at 1.2100 (100 pips). I should open 10 lots (on C2).

How can I do that with Stocks, Futures symbol trading if I have entry/exit price?

Example: If I buy BAC at 30.00 and stoploss at 20.00
How much (position size) should I open to risk 1% of 100k account?

Thank you in advance.

100 shares of BAC stock. If 100 shares move 10 points against you youâ€™re down \$1000 (your 1%)

risk: \$1000
stop: 10 points away
1000/10=100
(risk in dollars/stop points away)=number of shares in stock

Futures you need to know the tick amount. Every futures instrument has a different tick amount.
Example:
ES is \$12.50/tick or \$50 a point
risk: \$1000
stop: 6 points away
6 x 50 = 300 this is the risk per contract for a stop loss 6 points away
1000/300=3.33 you canâ€™t do futures in partial contracts so you trade 3 contracts.
If 3 contracts (\$150/point) move 6 points against you and get stopped out, you are down \$900

CL is \$10 per tick
risk: \$1000
stop: \$0.25 away or 25 ticks away or \$250 per contract
You are able to trade 4 contracts of CL under your conditions

Are you looking for how to figure this out or the position size calculator itself?

Hope that helps

Good day

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Hi PayoffMatrix,

For stock I have found this link, https://chartyourtrade.com/position-size-calculator/. Itâ€™s very easy and clear. Can you double check?

I am searching for the similar for futures calculator. Any one know please give me the link.

Btw, itâ€™s very nice if C2 adding a â€śRisk %â€ť beside the â€śQuantâ€ť box on the C2 quick trade.

So, itâ€™s very simple for Trade Leaders manage risk % position on trading.

Thank you

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I checked the calculator you found. It works fine for stocks. Below are the inputs and outputs and how you enter the inputs based on your criteria in your open.

INPUTS:

Account value: 100000
Percentage of account value willing to risk: 1
Entry price: 30
Initial stop: 20

Keep in mind if you short at 30 with a stop at 40 this will also compute the number of shares. It will show as -100 instead of a positive number.

You hit compute

OUTPUTS:

Max # of shares: this is the number I gave you. 100 shares of BAC
Position size: This is the total dollar value of your position. If you bought 100 shares at \$30 (30 x 100) you get \$3000.
\$ Risked/share: this input takes your entry price - stop (30-20) and you see \$10 here
% Risked/pos: This is the amount risked of this position. This output comes out to 33.33%. This is NOT the risk of your entire account of \$100,000. This is the risk of ONLY THIS POSITION. Your total position value is \$3000 and youâ€™re willing to risk \$1000 of that. Thatâ€™s why the input comes out this way.
\$ Risked/pos: This tells you what dollar value you are risking. Since you entered 1 in the input section and you entered your account value as 100000 it gives you the input of \$1000.

Out of all the outputs above, you are really looking to find out how many shares you can put on. The
other outputs are extra information. The first output is the one you are looking for based on your question in your open.

Are you trying to open a strategy or do you already have a strategy? I can possibly give you some more ideas. I would need to know what kind of trader you are (day/swing). Any other information you can provide. What I donâ€™t want is the secret sauce to your strategy. Do NOT put in the exact methods of how you take trades and how you exit. Iâ€™m looking for more general things. Do you scale in/out? What do you trade (stocks/options/futures). How do you manage risk?

Good day

I am a swing trader and already have a strategy.

I have found this: https://www.danielstrading.com/trading-resources/futures-calculator for futures calculator,

This is not exactly what I am looking for but itâ€™s help.

What I am looking for is position size calculator for futures when I have entry/exit price and risk percentage.

You might try this one for futures, it seems to work well:

Futures Risk/Position Size Calclulator

Thank you CoreyR,

Thatâ€™s not what I am looking for. Itâ€™s not the same result like on the C2 quick trade.

Hello @ST2

Sorry for the late response. Iâ€™ve been sick the last few days and today was my first day back. I think I know what youâ€™re looking for. Get ready to get your hands dirty and learn Excel. Iâ€™ll explain what I have but I built it myself in Excel. This may help you.

I have one main table with every instrument I trade. I also have minor tables for each individual instrument. These are designed to work together so every minor table is linked to the major one. I also have a live data feed coming into Excel. I doubt you need this for what youâ€™re looking to do but I need this for certain reasons. For the minor tables, I have different scale in levels and different stop levels. Iâ€™m able to put in how many contracts at each price for entry and each price for stop. This gives me the average entry and average stops. I have more data in these tables and Iâ€™ll get to that. Once I enter, the entire position shows up in my major table. What I can immediately see is the initial risk and contract size. In the main table, I also have in ticks what my actual stop is. I also use different metrics to determine what my max stop should be. This compares the two to make sure everything is inline. Iâ€™m also immediately able to see what price 1 R is and 2 and 3 R and so on. I have other metrics that arenâ€™t useful here but the table immediately calculates them for me. These metrics update every night and the table updates automatically. As contracts start coming off, I now have locked in money in the realized P/L column. This now shows me whatâ€™s really at risk left. When I move stops, this also reflects how much risk is left on the table. Every time something changes (example a stop moved), I can see at what price 1 R would be for example and other metrics like my theoretical entry price and just a bunch of other stuff. This table also shows my win rate and will signal if I try to take a trade that doesnâ€™t work with my win rate. This metric is PCP or profitability check planned. If I have a win rate of 50% (not my real win rate), I canâ€™t take a trade that I risk 3 to only win 1. If I tried, this would warn me before even putting the trade on. Thereâ€™s much more to this table but I donâ€™t think youâ€™re looking for much more.

Iâ€™ll give you an example. ES is trading at 2839 right now. I could enter in the ES table that I want to go long at 2839 for 1 contract and 2838 for 2 contracts and 2837 for 2 contracts. I could also enter my stops for example as 2830 for 3 contracts, 2833 for 1 contract and 2835 for 1 contract.

I immediately see that Iâ€™m trying to go long ES 5 contracts at an average price of 2837.8 and my average stop is 2831.6. The more important things is I immediately see the risk on the table is \$1550. I also see the price of ES if nothing else changes to hit 1 R or 2 R for example. Meaning what price would ES be at to be up \$1550 or be up \$3100.

Was that what youâ€™re looking for? Or partially what youâ€™re looking for? Or maybe overkill?

Hope this helps.

Good day

1 Like

Hi PayoffMatrix,

Hope you are well now.

Yes, it look interesting. Thank you for your comments.