Question 1

Why do I need to calculate position size?

Accepted Answer

Proper position sizing is the core of risk management. Keeping each trade's risk at 1-2% of your account ensures you can survive consecutive losses without getting liquidated, maintaining long-term trading ability.

Question 2

What risk percentage should I use?

Accepted Answer

Beginners should use 1%, experienced traders 1-2%. Risking more than 3% per trade is very dangerous — 10 consecutive losses would wipe out over 30% of your account.

Question 3

What is risk-reward ratio (R:R)?

Accepted Answer

Risk-reward ratio compares potential profit to potential loss. A 2:1 ratio means expected profit is twice the risk, 3:1 means three times. Aim for at least 2:1 — even with only 40% win rate, you can be profitable long-term.

Position Size Calculator