What percentage of capital should I risk per trade?

Many traders keep risk per trade around 1–2% of capital because smaller fixed-fraction risk usually keeps drawdowns more manageable than oversized positions. Beginners often start even lower until they have a strategy with a proven edge and stable execution.

Can I use this for F&O position sizing?

Yes. For futures, use the futures price as the entry price. Then divide the share-equivalent quantity by the current exchange lot size for that contract to convert the result into lots. Lot sizes are revised periodically, so always check the latest contract specification before placing the order.

Is position sizing the same as lot size in F&O?

No. Lot size is the minimum contract quantity fixed by NSE and cannot be changed. Position sizing tells you how many lots to trade based on your individual capital and risk parameters. You may find that your ideal position size is 1.7 lots — in which case you would round down to 1 lot to stay within your risk limit.

Does this calculator work for short selling?

Yes. For short trades your stop loss will be above your entry price. The calculator uses the absolute difference between entry and stop loss, so it works correctly for both long and short positions including intraday short selling on NSE equity and F&O short positions.

Position Size Calculator for Indian Stocks

Calculate exact quantity to buy or sell based on your capital and risk per trade — NSE, BSE & F&O.

Investment Amount

₹0.00

Potential Risk

₹0.00

Shares to Buy / Sell

shares / units

Open a free demat account:

Open Zerodha → Open Upstox →

This is an educational tool. Actual position sizing should account for liquidity, circuit limits, and your broker's margin requirements. Not SEBI registered advice.

What is Position Sizing in Stock Trading?

Position sizing is the process of determining how many shares or contracts to buy or sell in a single trade based on your account size and risk tolerance. It is one of the most important concepts in risk management for traders on NSE and BSE. Without proper position sizing, even a profitable trading strategy can lead to significant losses due to over-exposure in a single trade.

This calculator uses a fixed-fraction risk model: you decide how much of your capital you are willing to lose if the stop loss is hit, and it converts that into a share quantity. It is deliberately simpler and more conservative than Kelly-style sizing, which scales position size with your edge and can recommend uncomfortably large bets when your estimate of that edge is wrong.

How to Use This Position Size Calculator

Enter your total trading capital, the percentage of capital you are willing to risk on this trade (most professional traders recommend 1–2%), your planned entry price, and your stop loss price. Click Calculate to get the exact quantity to buy or sell.

Total Capital: Your full trading account balance in Indian rupees.
Risk per Trade: The percentage of capital you are comfortable losing if the trade hits your stop loss. Start at 1% if you are new to sizing positions this way.
Entry Price: The price at which you plan to enter the trade.
Stop Loss Price: The price at which you will exit the trade to limit losses. For long trades, this is below entry; for short trades (including intraday shorting), this is above entry.

Position Size Formula

// Step 1: Calculate rupee risk Risk Amount (₹) = Capital × (Risk % ÷ 100) // Step 2: Calculate risk per share Risk per Share = |Entry Price − Stop Loss Price| // Step 3: Calculate position size Quantity = FLOOR( Risk Amount ÷ Risk per Share ) // Step 4: Verify actual risk Actual Risk (₹) = Quantity × Risk per Share Position Value (₹) = Quantity × Entry Price

Example Calculation

Inputs: Capital ₹5,00,000 | Risk 1% | Entry ₹500 | Stop Loss ₹480

Risk Amount = ₹5,00,000 × 1% = ₹5,000

Risk per Share = |₹500 − ₹480| = ₹20

Quantity = FLOOR(₹5,000 ÷ ₹20) = 250 shares

Position Value = 250 × ₹500 = ₹1,25,000 (25% of capital)

How this interacts with margin and leverage

SEBI's margin framework requires brokers to collect and maintain prescribed margins on leveraged products including F&O, and brokers may impose stricter limits than the exchange minimum. Intraday leverage also varies by broker and can be cut without notice when volatility rises.

This calculator sizes the position from your risk tolerance before leverage enters the picture. It answers "how much can I afford to lose on this trade", not "how much can my broker let me buy". Check the actual margin available in your trading account before placing the order — a quantity you can risk is not necessarily a quantity you can fund. General guidance for retail investors is published on the SEBI investor charter.

Frequently Asked Questions

Many traders keep risk per trade around 1–2% of capital because smaller fixed-fraction risk usually keeps drawdowns more manageable than oversized positions. Beginners often start even lower until they have a strategy with a proven edge and stable execution.
Yes. For futures, use the futures price as the entry price. Then divide the share-equivalent quantity by the current exchange lot size for that contract to convert the result into lots. Lot sizes are revised periodically, so always check the latest contract specification before placing the order.
No. Lot size is the minimum contract quantity fixed by NSE and cannot be changed. Position sizing tells you how many lots to trade based on your individual capital and risk parameters. You may find that your ideal position size is 1.7 lots — in which case you would round down to 1 lot to stay within your risk limit.
Yes. For short trades your stop loss will be above your entry price. The calculator uses the absolute difference between entry and stop loss, so it works correctly for both long and short positions including intraday short selling on NSE equity and F&O short positions.