Maximum Risk Calculator
Check total portfolio exposure across open positions against your risk limits.
Please note: Trading carries substantial risk of loss. These calculators are planning tools, not trading advice, and no position sizing method prevents losses.
What the Maximum Risk Calculator does
Total portfolio risk — sometimes called portfolio heat — is the sum of what you would lose if every open position hit its stop at once. Limiting it stops a single bad day from doing the damage of a bad quarter.
Formula
Total risk = Sum of risk on every open positionPortfolio risk % = Total risk ÷ Account × 100Remaining budget = Account × Limit % − Total risk
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Account balance | selected currency | Yes | Accepts more than 0. |
| Risk per open position | text | Yes | Currency amount at risk on each open trade. |
| Maximum portfolio risk | % | Yes | Total risk you allow across all open positions. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Account balance, Risk per open position and Maximum portfolio risk.
- Select Calculate.
Worked example
A $50,000 account with four positions risking $250, $180, $300 and $150, limit 6%.
- Account
- 50000
- Risks
- 250, 180, 300, 150
- Limit
- 6
Total $880, which is 1.76% of the account — well inside the $3,000 budget.
Frequently asked questions
What is a sensible portfolio risk limit?
Six percent is a common ceiling — roughly three to six positions at one to two percent each. Beyond that, a correlated move across markets can cause serious damage in a single session.
Method and sources
Method. Total capital at risk across open positions, each measured as size times the distance from entry to stop, against account equity.
Assumptions
- Every stop holds at its level and positions are independent.
Limitations
- Summing individual risks assumes positions do not lose together. Correlated positions — the same sector, the same currency, the same underlying theme — can all hit their stops in one move, and the real exposure is closer to the sum than to the diversified figure it appears to be.
- Gaps invalidate the arithmetic entirely, since the loss is then whatever the market opens at.