Trade Risk Calculator
Set your risk per trade using support levels or fixed percentages. Stop blowing accounts.
Risk Management Calculator
Based on support level
For risk/reward ratio
How to Calculate Trade Risk
This calculator gives you two methods to set risk per trade: support-based (using technical levels) and percentage-based (using a fixed % of your account). Both methods output the exact dollar amount at risk and the stop loss price.
Support-based risk uses actual chart levels — support zones, moving averages, or key price points — to set your stop loss. The calculator then tells you how much of your account that stop represents. If it's more than your max risk, you reduce position size.
Percentage-based risk works in reverse: you set the % you want to risk, and the calculator computes where your stop loss should be based on your entry price and position size. Simple, fast, and keeps risk consistent.
Formula
Dollar Risk = Account Size × Risk Percentage. Stop Loss = Entry Price − (Dollar Risk ÷ Position Size)
Example
Support-based: You're buying NVDA at $900 with support at $880. That's a $20 stop on a $50,000 account. If you buy 100 shares, your risk is $2,000 — that's 4% of your account. Too high. Cut position to 50 shares: $1,000 risk = 2%.
Percentage-based: Same $50,000 account, 1% max risk = $500. At 100 shares, your stop must be within $5 of entry.
Frequently Asked Questions
What's the maximum I should risk on a single trade?
The general rule is never more than 2% of your account on a single trade. Many professional traders risk 0.5-1%. At 2% risk, ten consecutive losses (which happens) costs 18% of your account. At 5% risk, ten losses costs 40%.
Should I use support-based or percentage-based risk management?
Use support-based when you have clear technical levels on the chart. Use percentage-based when you're trading news events or setups without obvious support/resistance. Many traders use both — set the stop at a technical level, then check if the percentage risk is acceptable.
How do I know if my risk management is working?
Track your average loss vs. your average win over 50+ trades. If your average loss is consistently at or below your target risk percentage, your risk management is working. If losses are routinely larger than planned, you're likely moving stops or not using them.
Related Calculators
Position Size Calculator
Enter your account size, risk %, and stop loss — get the exact number of shares or contracts to buy. Works for stocks, crypto, forex, and futures.
Kelly Criterion Calculator
The mathematically optimal bet size based on your win rate and average payoff. Used by hedge funds and professional gamblers.
Drawdown Calculator
See exactly how many losing trades it takes to hit a specific drawdown at your risk level. Know your worst case before it happens.
Disclaimer: This calculator is for educational purposes only and does not constitute financial advice. Trading involves substantial risk of loss. Past performance does not guarantee future results. Always do your own research and consult with a licensed financial advisor before making investment decisions.