Risk Management Calculator
This calculator is the first step in successful bankroll management. It tells you the **maximum amount of money** you should risk on any single trade.
- Total Trading Bankroll: This is your entire capital. The total amount you have set aside for trading (e.g., £1000).
- Risk Percentage per Trade: The percentage of your total bankroll you are willing to lose on one trade.
Pro Tip: Most professional traders risk between 1% and 3% of their bankroll per trade. This allows them to survive a long string of losses without “blowing up” their account.
Example
If your bankroll is £1000 and you set a 2% risk:
- Your maximum risk per trade is £20.00.
- This is the amount your stop-loss should represent. You can now use this £20 to calculate your position size based on your entry and stop-loss price.
Calculate the maximum monetary risk per trade based on your total bankroll.
A conservative amount is typically 1% to 3%.
