BEHIND THE NUMBERS
How this calculation works
Worked example
The selected budget is £100. Each share loses £2 at the entered stop, so 50 shares use £100 of planned risk and £2,500 of purchase capital.
Example result: 50
Check pounds and pence before sizing
An entry of 1,450 pence means £14.50. Enter £14.50 here. Using the quoted pence number alongside a pound-denominated account would misstate both the share count and cash exposure.
A risk limit is not a margin calculation
The lot result divides the chosen budget by the value of the stop distance. It does not determine whether a broker will let you open the position or how much margin is required. Those depend on the contract and account.
Assumptions and rounding
- Share mode is long and unleveraged. Lot mode uses the broker’s GBP pip value entered by the user.
- Round the position down to whole shares or the entered lot step.
Questions about this calculator
What pip value should I enter?
Use the GBP value of one pip for one lot of the exact contract. If your broker gives it in another currency, convert it first using a rate you can verify.
Why can the share count be below the risk-only result?
The unleveraged mode also caps the purchase value and entered fees at your account capital.