What percentage of capital should I risk per trade?

Many trading books use 1% to 2% as an example, so that a run of losses does not wipe out the account. This site does not recommend a number; the calculator works with whatever you choose.

Does this work for short selling?

Yes. If the stop-loss is above the entry price, the calculator treats the trade as a short and works out the size the same way.

Why is the position value higher than my risk?

Risk is only the distance from entry to stop. A position of ₹2,50,000 with a ₹10 stop on a ₹500 share risks 2% of the position value, not all of it.

Position Size Calculator in Rupees for Shares and F&O

Choose how much of your capital you are willing to lose if the stop-loss is hit. The calculator tells you how many shares or lots that allows.

How to use it

Type your trading capital and the share of it you are willing to lose on this one trade, for example 1%. Or type a fixed rupee amount in Or risk in ₹, which is used instead.
Type the price you plan to enter at and the price where you would exit if you are wrong (your stop-loss).
For futures or options, pick F&O (lots) and type the lot size. NSE publishes lot sizes and changes them from time to time, so check the current one.

The formula

Quantity = money you are willing to lose ÷ loss per share if the stop is hit.

With capital of ₹5,00,000 and 1% risk, you are willing to lose ₹5,000. If you buy Stock ABC at ₹500 with a stop at ₹490, each share loses ₹10 at the stop, so you can buy 500 shares. The position is worth ₹2,50,000, half your capital, but the planned loss is still ₹5,000.

With F&O lots

F&O trades come in whole lots, so the calculator rounds down. With the same ₹5,000 budget and a ₹10 stop distance on a contract with a lot size of 75, one lot risks ₹750, so 6 lots (450 units) fit and the planned loss is ₹4,500. If even one lot risks more than your budget, the calculator says so: the honest answers are a closer stop, a smaller contract, or no trade.

What it cannot do

A stop-loss order is not a guarantee. If the price gaps past your stop, for example on news before the market opens, the loss can be larger than planned. Leverage in F&O makes such gaps more expensive. Position size also ignores charges; add them with the brokerage calculator.

Questions people ask

What percentage of capital should I risk per trade?: Many trading books use 1% to 2% as an example, so that a run of losses does not wipe out the account. This site does not recommend a number; the calculator works with whatever you choose.
Does this work for short selling?: Yes. If the stop-loss is above the entry price, the calculator treats the trade as a short and works out the size the same way.
Why is the position value higher than my risk?: Risk is only the distance from entry to stop. A position of ₹2,50,000 with a ₹10 stop on a ₹500 share risks 2% of the position value, not all of it.

Position size calculator