Proper position sizing is one of the most critical aspects of risk management. The Position Size Calculator in Katalyst helps you determine the correct number of contracts or shares to trade based on your account size, risk tolerance, and stop-loss distance.
To use the calculator, navigate to Simulators and select Position Size Calculator. Enter your account balance, the percentage of your account you are willing to risk on a single trade (e.g., 1% or 2%), your entry price, and your stop-loss price. The calculator instantly computes the maximum position size that keeps your risk within the defined limit.
For futures traders, the calculator knows the tick value and point value for all major contracts (ES, NQ, CL, GC, etc.). Just select the instrument from the dropdown and the math is handled for you. For stocks and options, enter the per-share or per-contract value manually.
The calculator also shows your risk in dollar terms, the reward if the trade reaches your target, and the resulting risk-reward ratio. This helps you evaluate whether a trade is worth taking before you place it. As a general guideline, most professional traders look for at least a 2:1 reward-to-risk ratio.
Your settings are automatically saved between sessions, so you do not need to re-enter your account size and risk parameters every time you open the calculator. The tool is available on Pro and Platinum plans.