LESSON 10 ~11 MIN · AT YOUR OWN PACE
Risk management calculations
Understand Entry, Stop, quantity and planned loss.
STEP 3 OF 4
Quantity from a risk budget
For practice, if your loss budget is B and the risk per unit is R, then quantity = B ÷ R. For whole shares, round down to a whole number. Do not copy this formula directly to forex lots or gold contracts: you need the contract multiplier and currency conversion.
AN EXAMPLE
B=50, Entry=100, Stop=95: R=5, quantity=10. Because of costs and gaps, this 50 is not an exact maximum loss.
RememberThis course does not recommend the same risk percentage for everyone.
Sources and further reading
Sources in English · Content reviewed on 28 September 2026. We made the examples for learning; they are not broker recommendations.
Investor.gov · Order types (opens in a new tab)CFTC · Forex and risk (opens in a new tab)FINRA · Day trading risks (opens in a new tab)