How to Use This Calculator
Position sizing is the foundation of risk management in futures trading. Trading too large relative to your account destroys capital during drawdowns. Trading too small leaves profit on the table. This calculator helps you find the right number of contracts based on three inputs:
- Account size — your total trading capital or funded account balance.
- Risk per trade — the percentage of your account you are willing to lose on a single trade. Most professional traders risk 0.5-2% per trade.
- Stop loss distance — how many ticks or points your stop loss is from your entry. This determines your dollar risk per contract.
Why Position Sizing Matters for Prop Firm Traders
Prop firm accounts have strict drawdown limits — typically $2,000-$3,000 on a $50,000 account. Oversizing a single trade can blow through your entire drawdown buffer in minutes. Using a position size calculator before every trade ensures you stay within your risk parameters and keep your funded account alive.
If you are managing multiple funded accounts with copy trading, consistent position sizing across all accounts is critical. TradeDupe mirrors your exact contract size to every follower account automatically.