Risk Per Trade Calculator

Calculate Risk Per Trade



Formula

The formula to calculate risk per trade is:

\[ \text{RPT} = \text{AB} \times \left(\frac{\text{RP}}{100}\right) \]

Where:

What is Risk Per Trade?

Risk per trade is a key concept in risk management for trading. It represents the amount of money that a trader is willing to risk losing on a single trade as a percentage of their total account balance. This helps traders manage their risk and avoid significant losses by only risking a small portion of their account on any given trade. It is a fundamental practice in trading to ensure longevity and capital preservation.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ \text{RPT} = 10000 \times \left(\frac{2}{100}\right) = 200 \]

The Risk Per Trade is $200.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ \text{RPT} = 5000 \times \left(\frac{1}{100}\right) = 50 \]

The Risk Per Trade is $50.