Risk management

Position Size Calculator

Enter your trading capital, maximum account risk, planned entry and stop-loss. The calculator shows the risk-based share quantity and whether your available cash can fund it.

Trade parameters

Trading capital

₹

₹5.00 Lakhs

Max account risk (%)

Maximum percentage of trading capital you are willing to lose if the stop is reached.

Planned entry price

₹

Planned stop-loss

₹

For this long-equity calculator, the stop must be below the entry.

Risk-based position

Within available capital

Position size

100shares

₹50.00 stop distance per share · 1.00% selected account risk

Position value

₹1,00,000

Planned risk at stop

₹5,000 · 1.00%

Available capital

₹5,00,000

Capital required

20.0%

Capital required 20.0%Cash remaining 80.0%

Position valueAvailable cash

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VSC principle: The stop comes from the trade setup. Account risk defines how much you are prepared to lose. Position size connects the two.

How the calculation works

Define the loss limit

Trading capital × max account risk gives the rupee amount you are prepared to risk if the stop is reached.

Measure the stop distance

Entry price − stop-loss gives the planned loss per share for a long equity trade.

Calculate the quantity

Risk amount ÷ loss per share gives the risk-based share quantity. Available cash is then checked separately.

Core formula: Position size = (Capital × Risk %) ÷ (Entry − Stop)

How to read the result

Risk-based quantity: The share count at which a stop-loss exit costs exactly your stated account risk. It is a ceiling set by risk, not a recommendation to buy that quantity.
Cash-funded quantity: What your available cash can actually pay for. When it is lower than the risk-based quantity, cash is the binding constraint and the smaller number is the tradeable size.
A wide stop shrinks the size: Entry-to-stop distance sits in the denominator, so a wider stop produces a smaller quantity for the same rupee risk. That is the formula working, not a fault in the setup.
The risk amount is fixed first: Changing entry or stop changes the quantity, never the rupee amount at risk. If the resulting size feels too small, the constraint is the stop distance or the risk percentage.