What is Position Sizing?

Position sizing refers to the number of units an investor or trader invests in a particular security. Determining appropriate position sizing requires an investor to consider their risk tolerance and the size of the account1. By carefully managing position sizes, investors can control risk and optimize their returns.

How Does Our Calculator Work?

Our Position Sizing calculator makes it easy to determine the optimal position size for your trades. Here’s how it works:

1. Enter your Total capital at hand.

2. Enter the Percentage of Risk you are comfortable bearing per trade.

3. Then enter your Entry price and Stop Loss price.

4. You will now see the calculated Kittas to buy.

The formula behind the calculator:

Total Kittas to buy = Risk per trade/Stop loss amount

Where:
T represents Total kittas (shares) to buy.
Risk per trade, which is generally 1%-3% of the total capital at hand.
Stop loss amount, which is calculated as: Entry price – Stop loss price.