Risk Per Trade Calculator
Estimate the loss and account-risk percentage for a stock position you supply.
Compare an exit at the stop with a hypothetical adverse fill and see how much budget remains.
Modeled trade risk
Enter the trade assumptions or load the worked example.
These are hypothetical exits. Actual fills and losses can differ. The calculation uses the charges you enter and excludes margin, borrowing and tax.
Learn to calculate risk per trade
Follow the long and short cash flows and check how charges and a worse fill change the result.
Read the risk per trade guideFormula and methodology
Modeled loss = share quantity × directional price distance + round-trip charges.
Modeled loss = share quantity × directional price distance + round-trip charges. For a long, subtract exit from entry. For a short, subtract entry from exit. Divide modeled loss by equity and multiply by 100. Convert your budget percentage to money using the same equity, then subtract modeled loss. Divide that signed difference by equity and multiply by 100 for percentage-point headroom.
Definitions
Risk per trade measures the hypothetical loss on a supplied position in money and as a percentage of positive account equity. Position value is quantity times entry price. Budget headroom is the difference between the supplied risk budget and modeled loss.
Verified worked examples
With 10,000 equity, 50 long shares, entry 50, stop 48, and 5 in charges, price loss is 100 and total loss is 105 (1.05% of equity). A 1% budget leaves −5 of headroom, or −0.05 percentage points. At an adverse exit of 47.50, total loss is 130 (1.30%).
Interpretation
Negative headroom means the modeled loss exceeds the budget. Zero means the scenario uses it exactly. An optional adverse exit shows the result of a specific worse fill and can be identical to the baseline if the same exit price is supplied.
Inputs and interpretation
Choose long or short and a display currency. Enter equity, share quantity, entry, stop, round-trip charges and a budget percentage. Enter zero for no charges or a zero budget. Optionally enter an adverse exit. Changing direction clears the stop and adverse exit.
Assumptions and limitations
One stock trade in a consistent major currency. A long stop must be below entry and its adverse exit at or below the stop. A short stop must be above entry and its adverse exit at or above the stop. The same charges apply once to each alternative scenario.
Supported domain and common mistakes
Prices, shares, charges and equity support up to 1 trillion with up to 12 decimal places. Entry and equity are strictly positive. Budget ranges from 0% to 100%, and modeled risk can exceed 100% of equity. A zero-share trade requires zero charges. The model keeps money exact and rounds ratios to 24 significant digits.
Use total account equity for the denominator. Keep the cost of buying or selling the position separate from modeled loss. Include assumed execution effects either in the exit price or in an explicitly supplied cost, without counting them twice.
Frequently asked questions
What is my risk per trade?
Why is my headroom negative?
Can account risk exceed 100%?
Where does a short trade’s stop go?
Do I have to enter an adverse exit?
Does switching currencies convert my inputs?
Sources and educational scope
Educational scenario analysis. Actual fills and losses may differ. It excludes borrowing, margin, trading eligibility, tax, FX, market impact and execution probabilities. It gives no personalized recommendation or maximum loss guarantee.
Reviewed . AI-assisted content under operator editorial responsibility. No independent expert financial review is claimed.