BGS POSITION SIZING CALCULATOR

What is risk per trade?

Your risk budget is your account balance multiplied by your risk percentage. For example, $5,000 × 1% = $50. This is the planned amount you're willing to lose, not the amount you spend to open a trade.

Position size and stops

For shares and individual purchased options, planned stop-loss risk is based on the difference between entry and stop, multiplied by shares per unit. Position size rounds down to a whole share or contract. A stop is not a guaranteed fill.

Contract multiplier

Ordinary shares use a multiplier of 1. Standard US equity options use 100. Both are automatic and locked. Adjusted or nonstandard options are not supported.

Credit spreads

A bull put or bear call credit spread sells one option and buys another option farther out of the money. For conventional vertical spreads, maximum theoretical loss at expiration equals strike width minus net credit, multiplied by 100. Maximum theoretical profit is the credit received.

Debit spreads

A bull call or bear put debit spread buys one option and sells another. Maximum theoretical loss is the net debit paid multiplied by 100. Maximum theoretical profit equals strike width minus net debit, multiplied by 100.

Short iron condor

An iron condor combines a short put credit spread and a short call credit spread. Under conventional same-expiration, nonoverlapping conditions, maximum theoretical loss is the wider wing width minus the total net credit, multiplied by 100.

Long straddle

A long straddle buys a call and a put with the same strike and expiration. Maximum loss is the combined premium paid. The strategy benefits from a sufficiently large price move in either direction.

Long strangle

A long strangle buys an out-of-the-money call and an out-of-the-money put, normally with different strikes. Maximum loss is the combined premium. A larger price move is usually needed to overcome the combined cost.

Why might the result show zero?

If buying even one share, contract, or complete strategy unit exceeds the selected risk budget, the appropriate result is zero. The calculator does not force a minimum purchase of one.

Trading costs and buying power

Fees and slippage are optional and off by default. Available funds may further restrict position size. These estimates do not replace your broker's margin or collateral rules.

Important strategy risks

Advanced calculations assume standard, same-underlying, same-expiration option contracts and theoretical expiration payoffs. Early assignment, partial fills, execution prices, changes in option premiums, stock delivery, expiration exercise, dividends, and broker requirements may produce different results.