Risk Management & Position Sizing Tool
How to Use the Bullionite Position Sizing & Risk Calculator
Mastering risk management is the most critical step to becoming a consistently profitable trader. This free trading tool allows you to calculate your exact position size and risk-to-reward ratio before entering any trade, ensuring you never over-leverage your account. Whether you are trading gold (XAUUSD), forex, or stocks, follow these simple steps to protect your capital:
Position Sizer Pro
1. Account Balance: Enter your total current trading capital (e.g., $10,000).
2. Risk Percentage: Define the percentage of your account you are willing to lose on this single trade. Disciplined traders typically risk between 0.5% and 2%.
3. Entry Price: Input the exact price where you intend to buy or sell.
4. Stop Loss Price: Enter your technical exit point. Our calculator will use the distance between your entry and stop loss to determine the correct lot size or number of shares to trade.
By automating your lot size calculation, you remove emotion from your strategy and focus purely on the mathematics of "creating wealth" through high-probability setups.
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DescMost professionals risk no more than 1% to 2% of their total account balance on any single trade.
If you have $10,000 and risk 1%, your "Risk Amount" is $100.
This means that regardless of where your Stop Loss is, if the trade hits that level, you only lose $100.
The Benefit: You would need to lose 100 trades in a row to blow your account. This removes the emotional stress of trading.ription text goes here
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Description text goThe R:R ratio compares how much you are prepared to lose versus how much you expect to gain.
1:1 Ratio: You risk $100 to make $100. (You must be right >50% of the time).
1:3 Ratio: You risk $100 to make $300. (You only need to be right 25% of the time to break even).
By focusing on trades with high R:R ratios (typically 1:2 or higher), you can lose more often than you win and still grow your account balance over time.es here
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The calculator uses the following formula to determine your position size:
$$\text{Position Size} = \frac{\text{Account Balance} \times \text{Risk } \%}{\text{Entry Price} - \text{Stop Loss Price}}$$
By using this formula, your dollar risk stays constant even if your stop loss is very wide or very tight. The calculator simply adjusts the number of shares or lots you buy to keep that $100 risk (in a $10k account) the same.
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For Forex: Remember that 1.00 Lot equals 100,000 units of the base currency. Our calculator handles this conversion automatically when you select the "Forex" toggle.
For Crypto: Volatility is higher in crypto. We recommend staying on the lower end of the risk slider (0.5% - 1%) to account for "slippage" during fast market moves.
Double Check: Always ensure your Stop Loss is on the correct side of your Entry (Below for Longs, Above for Shorts).
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BabyPips: School of Pipsology — The best free course for understanding Forex pips and lots.
Investopedia: Position Sizing — A deep dive into the mathematical theory of risk management.
TradingView Charts — The platform most traders use to find the "Entry" and "Stop" levels for this calculator.