Formula
Money at risk = Capital × Risk %
Risk per share = |Entry − Stop-loss|
Quantity = Money at risk ÷ Risk per share
With ₹5,00,000 capital and 1% risk, you can lose ₹5,000. Entry ₹2,450 with a stop at ₹2,400 risks ₹50 a share, so you buy 100 shares.
Why size by risk?
Traders who risk a small, fixed share of capital on each trade can survive a long losing streak. Ten losses in a row at 1% risk cost about 10% of capital; at 10% risk they wipe out most of it.
Frequently asked questions
How much should I risk per trade?
Many traders risk 0.5% to 2% of capital per trade. Choose a level you could lose ten times in a row and still keep trading.
Does this work for short selling?
Yes. Put the stop-loss above the entry and the calculator treats it as a short trade.
What if the quantity needs more money than I have?
The calculator caps the quantity at what your capital can buy without leverage and tells you.