Free Trading Risk Calculator – Calculate Your Trade Risk
What Is a Trading Risk Calculator?
A Trading Risk Calculator helps you determine how much you should risk on each trade based on your account size, risk percentage, and stop loss.
Its main goal is capital protection, which is the foundation of consistent trading.
Professional traders do not focus on how much they can win — they focus on how much they can lose per trade.
How to Use the Trading Position Size Calculator
What This Trading Calculator Does
Using your inputs, the calculator determines:
Suggested position size (lots / contracts)
Maximum possible loss if Stop Loss is hit
Potential profit if Take Profit is reached
Risk / Reward ratio (R:R)
Distance in pips between entry, stop loss, and take profit
This removes emotions and guesswork from position sizing.
Step-by-Step Tutorial
Step 1: Select the Asset Class
At the top, choose the asset class (for example: Forex – Standard). This setting determines: Contract size Pip value Calculation logic Always select the asset class that matches what you are trading.
Step 2: Enter Your Account Balance
In Account Balance, enter your total trading capital. This represents the amount your risk will be calculated from.
Account Balance: 10,000 $
This represents the amount your risk will be calculated from.
Step 3: Set Your Risk Percentage
In Risk Percentage, enter how much of your account you are willing to risk on a single trade. Professional traders usually risk: 0.5% – 1% per trade Rarely more than 2%
Example:
On a $10,000 account, this means a maximum loss of $100.
Step 4: Choose Trade Direction
Select: BUY (Long) if you expect price to go up SELL (Short) if you expect price to go down This affects how Stop Loss and Take Profit are calculated.
Step 5: Enter Entry Price
Input the exact price where you plan to enter the trade.
Example:
Step 6: Enter Stop Loss (SL)
Enter the price level where your trade is invalid.
Example:
The calculator uses this to determine:
Distance in pips
Maximum loss
Correct position size
Never trade without a stop loss.
Step 7: Enter Take Profit (TP)
Enter your profit target.
Example:
This allows the calculator to compute:
Potential profit
Risk / Reward ratio