Position Size Calculator

You decide the most you're willing to lose on a trade - usually 1-2% of your capital - and the price at which you'd exit (stop-loss). Position size = (capital × risk%) ÷ (distance from entry to stop). This caps your loss at your chosen amount regardless of how far the market moves against you, as long as your stop fills.

Most disciplined traders risk 1-2% of capital per trade. At 1%, a string of 10 losing trades costs roughly 10% of capital - survivable. Risking 5-10% per trade is how accounts blow up: just a few losses in a row can wipe out a large chunk. Lower risk % means smaller positions but far better survival odds.

Because F&O lots are large (Nifty 65, Bank Nifty 30), one lot can already risk more than your budget allows. The calculator rounds down to whole lots so your max loss stays within budget. If it shows 0 lots, your stop is too wide or your risk budget too small for even one lot - widen capital, tighten the stop, or accept more risk.

No - this tool sizes your risk, not your margin. A position sized for 1% risk may still need more margin than you have (especially for futures). Always check you have the margin to hold the position with our margin calculator before placing the trade.

A wider stop means a smaller position for the same rupee risk, and vice versa. Neither is 'better' - your stop should be placed where your trade idea is proven wrong (a technical level), and the position size then follows from it. Never widen a stop just to trade a bigger size.

The 1% rule means never risking more than 1% of your total capital on a single trade. On ₹5,00,000 that's ₹5,000 max loss per trade. It's the simplest guardrail against ruin - it keeps any single bad trade, or a losing streak, from doing serious damage to your account.