Position Sizing from Account Risk and Stop Distance

Summary

This chart-based calculator converts a chosen account-risk percentage and stop price into a position size. The user sets a risk base such as balance, equity, or free margin, then places or moves Entry and Stop lines. The tool calculates the potential loss in account currency for one lot and derives the volume that fits the selected risk. It rounds volume down to the broker’s allowed step and reports when the result is below the minimum volume.

The description says profit and margin calculations use the platform’s account-currency and broker-conversion functions, including for instruments where a points-times-tick-value shortcut may be inaccurate. It also displays required and remaining margin and can plot a target for a chosen reward-to-risk ratio. The tool only displays calculations and does not place or manage orders. The page provides feature claims but no independent validation, test cases, or performance evidence; users must still choose suitable risk, entry, and stop levels.

Key ideas

• The calculator derives lot size from a selected account-risk base, risk percentage, and stop distance.
• It uses broker-aware profit calculations to express risk in account currency across instruments.
• Volume is rounded down to the broker’s step, and below-minimum results are reported explicitly.
• The panel can show required margin and a target based on a chosen reward-to-risk ratio.
• The tool displays sizing information but does not submit or manage orders.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.