VCM / FREE TRADING TOOLS
Risk Budget Calculator
Calculate a cash risk budget from an account amount and a scenario percentage, with a worked example. Inputs stay on this page.
Risk-budget calculator
Calculate a percentage of an account amount. This is an arithmetic scenario, not a recommended risk level or an order-size calculation.
Scenario budget: 100 account-currency units
Formula: account amount × percentage ÷ 100. This does not include slippage or determine broker volume. Actual losses can exceed a planned amount.
Worked example
A 1% scenario on a 10,000 account gives a budget of 100 in the account currency.
Use the same account currency throughout. A cash risk budget is one input into position sizing. To translate it into trade size, you also need the planned stop distance, the instrument’s value per price increment, and trading costs. Gaps and slippage can increase losses.