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Institute of Investing

Position Sizer

Max Risk Amount:
Risk per Share:
Recommended Shares 0

Methodology

Proper position sizing ensures that no single loss can critically damage a portfolio's capital base. Institutional traders rarely risk more than 1-2% of total equity on a single idea.

This calculator determines the exact number of shares to purchase so that if the stop loss is triggered, the monetary loss equals exactly your maximum defined risk.