Monday, January 29, 2024

Quantity Calculation for trading

 How to calculation quantity for trading ?

If your fund is INR.100000.

You want to Risk in per trade INR.2000 ( 2% of total fund ).

Current price : 500

Stoploss point : 400

Two method for calculation 

First formula

quantity = risk fund / (current price - stoploss point)

quantity = 2000 / ( 500-400)

quantity = 2000/100

quantity =20


Second formula

Use fund for trade = amount

amount =   risk fund * 100 / 100-stoploss point( current price/100)

amount = 20 / 200000

amount = 200000/20

amount = 10000

quantity =amount / current price


For bank nifty indian exchange

current bank nifty lots size = 15

lots = quantity/15

lot  =  1.33

lot = 1 round you can buy 1 lot in bank nifty