Position size and risk
Set the most you are prepared to lose, then calculate a maximum size from the entry, protective stop and value of one point.
Risk amount ÷ (stop distance × point value)
Plan the numbers before the trade.
Free calculators for sizing risk, testing trade expectancy, understanding drawdown, checking margin and illustrating compound growth.
Use one currency and one price scale throughout each calculation.
Risk and reward
Check whether the distance to a planned target compensates for the distance to the protective stop before an order is placed.
Reward distance ÷ risk distance
Trade expectancy
Combine win rate with average winning and losing trades to estimate the theoretical value of one trade across a larger sample.
(Win rate × average win) − (loss rate × average loss)
Drawdown recovery
See why the percentage gain required to recover a loss grows faster than the drawdown itself.
Capital loss ÷ current balance
Margin and leverage
Estimate how much account equity a leveraged position would reserve as initial margin before broker-specific adjustments.
Position value ÷ leverage
Compound growth illustration
Explore how an assumed annual rate and end-of-month contributions affect a balance when returns are compounded monthly.
This is a mathematical illustration, not a trading forecast.