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%.

Maximum Risk Per Trade:

Your Max Risk is:

This is the maximum loss your trade should accept before closing the position (stop-loss).