Free tool
Position size calculator: how many shares to buy at 1% or 2% risk
Work out how many shares to buy so that a stop-loss hit costs only the share of capital you chose — 1% or 2%, not whatever the trade happens to cost.
Buy
57 shares
- Loss if stop is hit
- ₹997.50 (1% of capital)
- Position value
- ₹28,500.00
- Capital used
- 28.5%
- Stop distance
- ₹15.00 (3%)
Plain formula: 66 shares. With the gap buffer the app sizes from ₹482.50, so a small gap past your stop still stays within ₹1,000.
This calculator only does arithmetic on the numbers you enter. It uses no market data and is not investment advice or a recommendation to trade.
Same capital and entry, different stop distances
A wider stop means fewer shares for the same rupee risk. This is why the stop comes first and the quantity second.
| Stop distance | Stop-loss | Qty at 1% risk | Qty at 2% risk |
|---|---|---|---|
| 1% | ₹495.00 | 133 | 200 |
| 2% | ₹490.00 | 80 | 160 |
| 3% | ₹485.00 | 57 | 114 |
| 5% | ₹475.00 | 36 | 72 |
| 8% | ₹460.00 | 23 | 47 |
Why 1% or 2%
What a losing streak does to your capital
Every trader has losing streaks. Risk a fixed share of what you have left on each trade, and this is how far capital falls after that many full stop-outs in a row — and the gain you would then need just to get back.
| Losses in a row | At 1% risk | At 2% risk | At 5% risk |
|---|---|---|---|
| 3 | −3%needs +3.1% | −5.9%needs +6.2% | −14.3%needs +16.6% |
| 5 | −4.9%needs +5.2% | −9.6%needs +10.6% | −22.6%needs +29.2% |
| 10 | −9.6%needs +10.6% | −18.3%needs +22.4% | −40.1%needs +67% |
| 15 | −14%needs +16.3% | −26.1%needs +35.4% | −53.7%needs +115.8% |
| 20 | −18.2%needs +22.3% | −33.2%needs +49.8% | −64.2%needs +179% |
Assumes every trade loses exactly the planned amount and risk is a % of the remaining balance. Charges and gaps make real streaks worse.
How the math works
The formula, in full
- Risk budget
- Capital × Risk %
- Sizing stop
- Your stop-loss, moved 0.5% (or 3 ticks, whichever is larger) further from entry
- Risk per share
- Entry − Sizing stop
- Quantity
- floor(Risk budget ÷ Risk per share), then capped at floor(Capital ÷ Entry)
Worked example
- Risk budget: ₹1,00,000 × 1% = ₹1,000
- Sizing stop: ₹485.00 moved 0.5% further from entry and rounded to the tick = ₹482.50
- Risk per share: ₹500.00 − ₹482.50 = ₹17.50
- Quantity: floor(₹1,000 ÷ ₹17.50) = 57; capital allows up to floor(₹1,00,000 ÷ ₹500.00) = 200, so the answer is 57 shares
- If the stop is hit at the buffered price: 57 × ₹17.50 = ₹997.50, inside the ₹1,000 budget. The plain formula would have said 66 shares.
Assumptions and limits
- Gap buffer: a stop-loss order can fill below its trigger when price gaps. Sizing from a stop 0.5% further away keeps a small gap inside your budget. Switch it off to see the textbook number.
- Ticks: the buffered stop is rounded to the tick for its price band. The app uses each stock’s exact tick from your broker, so its stop can occasionally differ by one tick.
- Capital cap: if the risk-based quantity costs more than your capital, the quantity is cut to what capital can buy. That only lowers your risk.
- Not included: brokerage, STT, exchange fees, GST and stamp duty. They add to the real cost of a stop-out.
- Large gaps can still go past the buffer — a stop-loss limits a loss in normal trading but cannot guarantee a maximum loss.
FAQ
Position sizing questions
What is position sizing?
Position sizing decides how many shares to buy so that, if your stop-loss is hit, you lose a fixed, small part of your capital. The stop-loss sets the risk per share; your risk budget sets how many shares that allows.
Why risk only 1% or 2% per trade?
Because losing streaks happen. At 1% per trade, ten losses in a row cost about 10% of capital; at 5% per trade they would cost about 40%. StockMyWealth’s risk rules use 1% or 2% per trade.
Why is the quantity lower than the textbook formula?
The calculator sizes from a stop 0.5% (or 3 ticks) beyond your stop-loss, because a stop order can fill below its trigger when price gaps. It is the same buffer the StockMyWealth app uses. Turn off the gap buffer to see the plain formula.
Does it include brokerage and taxes?
No. Brokerage, STT, exchange fees, GST and stamp duty are not included and add to the cost of a stop-out. StockMyWealth estimates these charges on paper trades.
Does it work for short trades?
Yes. If the stop-loss is above the entry price, the calculator sizes a short position the same way. Whether you can hold a short depends on your broker and segment.
Is this a risk per trade calculator?
Yes. Choose how much of your capital to risk on one trade, and the calculator turns that rupee amount into a share quantity for your stop-loss.
Kitne share kharidne chahiye, kaise pata karein?
Capital ka 1% ya 2% risk amount nikaalo. Use entry aur stop-loss ke fark se divide karo, aur jo number aaye use neeche round karo. Wahi quantity hai — upar ka calculator yahi karta hai.
Stop-loss se position size kaise nikale?
Pehle stop-loss wahan rakho jahan aapka trade idea galat saabit hota hai. Risk per share = entry − stop-loss. Quantity = (capital × risk %) ÷ risk per share.
Is this investment advice?
No. This calculator only does arithmetic on the numbers you enter. It uses no market data and is not investment advice or a recommendation to trade. Software tool, not investment advice. StockMyWealth is not a SEBI-registered investment adviser or research analyst, and not a broker.
Let the app size every trade for you
StockMyWealth sizes each ticket from your capital and risk %, checks it with Shield, and waits for your Approve before anything reaches your broker.
No Approve, no order.
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