Risk Leverage Tool

Risk Leverage Tool – Calculate Position Size and Required Leverage

This script automatically calculates the optimal position size and the leverage needed based on the amount of capital you are willing to risk on a trade. It is designed for traders who want precise control over their risk management.

The script determines the distance between the entry and stop-loss price, calculates the maximum position size that fits within the defined risk, and derives the notional value of the trade. Based on the available margin, it then calculates the required leverage. It also displays the percentage of margin at risk if the stop-loss is hit.

All results are displayed in a table in the top-right corner of the chart. Additionally, a label appears at the entry price level showing the same data.

To use the tool, simply input your planned entry price, stop-loss price, the maximum risk amount in dollars, and the available margin in the settings menu. The script will update all values automatically in real time.

This tool works with any market where capital risk is expressed in absolute terms (such as USD), including futures, CFDs, and leveraged spot positions. For inverse contracts or percentage-based stops, manual adjustment is required.