Calculation method
Risk budget = Account value × Risk % / 100 Units = floor(min(Risk budget / (Entry − Stop), Account value / Entry))
Assumptions & scope
The quantity is rounded down to whole units and capped by the cash available. The estimate assumes execution exactly at the input stop price and ignores fees, gaps and taxes. It is not a futures, options, short-selling or leveraged-product calculator. Actual loss can exceed the chosen budget.
Worked example
Illustrative inputs: account 10,000, chosen risk 1%, entry 100 and stop 95 produce 20 units. The modeled stop-distance loss is 100 and purchase notional is 2,000.
Sources & references
References support specific definitions or methodological context. Examples and research checklists are explanatory; no performance result is claimed.