⚡ Free Tool

Position Sizing Calculator

Calculate the exact quantity to trade — without blowing your account. Supports Equity, Futures & Options. Built for Indian markets.

Equity Trade Inputs
Trading Capital *
Total capital available for trading
MTF Leverage
x
Margin Trade Funding leverage (e.g. 1, 3.18, 4.35)
Entry Price *
Stop Loss *
Target Price *
Risk Per Trade
2.0%
% of capital to risk — institutional standard: 2%
Symbol (optional)

What is Position Sizing?

Position sizing is the process of determining exactly how many shares, lots, or contracts to buy or sell in a single trade — based on your available capital and how much of it you're willing to risk.

Most retail traders lose money not because they pick wrong stocks — but because they bet too much on each trade. One bad position wipes weeks of profits. Position sizing solves this permanently.

How This Calculator Works

1
Define your risk. Choose what % of capital you're willing to lose if stop loss is hit. Institutional standard: 2%.
2
Calculate risk per unit. Entry − Stop Loss = risk per share. Entry ₹1,500 · SL ₹1,450 = ₹50 risk/share.
3
Derive quantity. Max Allowed Loss ÷ Risk Per Share = Safe Quantity. ₹2,000 ÷ ₹50 = 40 shares.

Equity vs Futures vs Options

Equity: You own shares directly. MTF leverage multiplies buying power. Margin required is 1/leverage.

Futures: Fixed lot size. Margin ~10–18% of contract value. Risk scales with lot size.

Options: Premium paid upfront = maximum loss for buyers. Calculator treats premium as 100% capital deployed.

Benefits of Proper Risk Management

You stay in the game. A trader who never blows up eventually wins. Emotional sizing ends trading careers.

Consistency over luck. 55% win rate + 1.5:1 R:R compounds capital reliably over time.

Scales naturally. A well-sized strategy on ₹1L works identically on ₹1Cr. This is how hedge funds operate.

Frequently Asked Questions
Why 2% risk per trade?
Should I always use the "Professional" recommendation?
Does this work for intraday and positional trades?
What lot sizes are used for F&O?
What is MTF leverage?
What if my calculated quantity is 0?
EaseAlgo Position Sizing Calculator is a free educational tool. All calculations are for informational purposes only and do not constitute financial advice. Always verify lot sizes and margin requirements with your broker before placing trades. Trading in F&O carries significant risk of loss.
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DISCLAIMER: Investing in securities is subject to market risk. Past performance is not indicative of future performance. EaseAlgo is a technology and education platform — not a SEBI Registered Investment Advisor. All trade ideas, signals, and system outputs shared on this platform are for educational and informational purposes only and do not constitute investment advice. Users are solely responsible for their trading decisions. Please consult a registered financial advisor before making any investment.