How are my Quantity (QTY) and Potential Profit calculated?

Modified on Sat, 26 Oct, 2024 at 6:46 PM

QTY and potential profit are calculated based on the entry price, stop loss (SL), target price, total trading capital, and your specified per-trade risk.

Example: Suppose the signal details are as follows:

  • Entry Price: 100
  • SL: 98
  • Target: 106

The risk per stock would be 2 INR (Entry - SL) and the reward would be 6 INR (Target - Entry).

If your trading capital is set to 100,000 INR with a per-trade risk of 0.5%, your per-trade risk amounts to 500 INR.

QTY Calculation:
Your QTY would be calculated as:

  • Per-Trade Risk (500 INR) / Risk per stock (2 INR) = 250 QTY

Potential Profit Calculation:
Your potential profit is calculated based on your QTY multiplied by the reward per stock:

  • 250 QTY x 6 INR = 1,500 INR potential profit.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article