Most professional traders risk between 1% and 2% of their account on any single trade. Beginners should start with 1% or less until they develop a consistent strategy.

A tighter stop loss allows for a larger position size since the risk per share is smaller. A wider stop loss reduces the position size. Always set stops based on technical analysis, not position size.

Fixed percentage is generally preferred because it scales with your account size. If you risk 2% on a $10,000 account, that's $200. When your account grows to $20,000, you automatically risk $400, keeping risk proportional to your capital. Fixed dollar amounts need manual adjustment as your account changes.

Yes! The Position Size Calculator works for any tradeable asset — stocks, ETFs, forex, crypto, futures, and options. Just enter your account balance, risk percentage, entry price, and stop loss. The calculator will determine the optimal position size regardless of the asset class you're trading.

A ratio of 1:2 or higher is generally considered good. This means you risk $1 to potentially make $2, giving you a 50% win rate to break even.

No. A strategy with a 40% win rate can be highly profitable if the average winner is 3x the average loser. Focus on R:R, not just win rate.

Expected value = (Win % × Average Win) - (Loss % × Average Loss). For example, with a 1:3 R:R and 40% win rate: (0.4 × 3) - (0.6 × 1) = 1.2 - 0.6 = 0.6 positive expected value. This means each trade has a positive average return over many trades.

Yes, it can. As the price moves, your risk and potential reward change. Many traders use trailing stop losses to lock in profits, which improves their effective R:R. This is called dynamic risk management and is a key skill for advanced traders.

More frequent compounding (daily vs. annual) results in slightly higher returns. For example, $10,000 at 12% for 10 years yields $33,004 compounded daily vs. $31,058 compounded annually.

No. You can leave it at 0 to see how just your initial investment grows. Adding monthly contributions significantly accelerates growth.

The Rule of 72 is a quick way to estimate how long it takes to double your money. Divide 72 by your annual return rate. For example, at 12% annual return: 72 ÷ 12 = 6 years to double. At 8%: 72 ÷ 8 = 9 years. It's a useful mental shortcut, but this calculator gives you the exact figures.

No, this calculator shows nominal returns before inflation. To estimate real (inflation-adjusted) returns, subtract the expected inflation rate from your expected annual return. For example, if you expect 12% returns and 3% inflation, use 9% as your rate in the calculator to see purchasing power growth.

Percentage fees scale with trade size (e.g., 0.05% of total value), while fixed fees are a flat amount per share traded (e.g., $0.01 per share).

The break-even price is the price your stock needs to reach at sale to cover all trading costs. Below this price, you're making a net loss even if the stock price is above your buy price.

The calculator accounts for brokerage fees, STT (Securities Transaction Tax), and stamp duty — the three main charges on Indian stock trades. Depending on your broker, there may be additional charges like GST on brokerage, SEBI turnover fees, or exchange transaction charges. Check your broker's fee schedule for the complete picture.

Choose the option that matches your broker's fee structure. Percentage fees (e.g., 0.05% per trade) are common with discount brokers and scale with trade value. Fixed fees (e.g., $0.01 per share) are typical with full-service brokers. For very large trades, fixed fees often work out cheaper. Use this calculator to compare both scenarios.

The chart shows potential profit or loss at expiration across different underlying prices. The green dot marks maximum profit, the red dot marks maximum loss.

With long options (buying), your maximum loss is limited to the premium paid. With short options (selling), losses can be potentially unlimited, which is why option selling carries higher risk.

If you hold a call option until expiry and the stock price is above the strike, the option expires in-the-money and is typically settled for its intrinsic value. If the stock price is below the strike, the option expires worthless and you lose the entire premium paid. The payoff chart shows exactly where you profit, break even, or lose money at expiry.

For a long call: Break-even = Strike Price + Premium Paid. For a long put: Break-even = Strike Price - Premium Paid. For short positions, it's reversed. For example, buying a $150 call for $5 premium means the stock needs to reach $155 to break even. The chart automatically calculates and marks the break-even point for you.