Multi-Position Capital at Risk Calculator
Individual trade risk is only part of the picture. When you're running multiple positions, your total portfolio risk can spiral without you noticing. This calculator aggregates risk across all your open positions to show your true exposure.
Add each of your positions with their margin, leverage, and stop-loss levels. See total capital at risk, margin utilization, and a visual breakdown of where your risk is concentrated.
Total trading capital
Positions
Portfolio Risk Summary
Total Capital at Risk
$152.00
Risk Distribution
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Calculation Methodology
Portfolio risk is the sum of individual position risks. Each position's risk depends on its margin, leverage, and stop-loss distance. This tool aggregates all positions to show your true portfolio exposure.
Key Insight: Individual positions may seem small, but combined risk can be significant. Three positions each risking 2% = 6% total risk. If all stop out simultaneously (which can happen in correlated markets), you lose 6% of your account in one day.
Learn more about position sizing:
Position sizing guideExample Scenario
Setup: $10,000 account, two positions
What this means: If both positions hit their stops simultaneously, you lose $152 (1.5% of account). The pie chart shows each position's contribution to total risk.
Warning: If these positions are correlated (e.g., both long BTC-related assets), they may stop out together, making simultaneous losses more likely.
Common Mistakes & Warnings
- ⚠Adding positions without recalculating: Each new position increases total risk. Three 2% positions = 6% total risk, not 2%.
- ⚠Ignoring correlation: Correlated positions (BTC/ETH, similar sectors) can move together. If one stops out, others likely will too.
- ⚠Not accounting for slippage: Stop orders can slip 0.1-0.5% in volatile markets. Add buffer to stop distance calculations.
- ⚠Exceeding safe risk limits: Most risk managers cap total portfolio risk at 5-10%. Beyond that, a bad day can wipe out weeks of gains.
- ⚠Margin utilization too high: Using 80%+ of margin leaves no buffer for margin calls or adding positions. Keep margin utilization under 50-70%.
Example Scenarios
Try these realistic scenarios to understand portfolio risk across multiple positions.
Scenario 1: Small Diversified Portfolio
Two positions with moderate risk. Good example of basic portfolio risk management.
Step-by-Step Calculation:
- Position 1 notional: $500 × 5 = $2,500
- Position 1 max loss: $2,500 × 5% = $125
- Position 2 notional: $300 × 3 = $900
- Position 2 max loss: $900 × 3% = $27
- Total risk: $125 + $27 = $152
- Total risk %: ($152 ÷ $10,000) × 100 = 1.52%
- Margin utilization: (($500 + $300) ÷ $10,000) × 100 = 8%
What this means: With two positions, total risk is $152 (1.52% of account). This is well within safe limits. If both positions stop out simultaneously, you lose 1.52% of your account - manageable and recoverable.
Scenario 2: Medium Portfolio with Multiple Positions
Three positions with varying risk levels. Shows how risk accumulates across positions.
Step-by-Step Calculation:
- BTC risk: $1,000 × 10 × 2% = $200
- ETH risk: $800 × 5 × 3% = $120
- SOL risk: $500 × 3 × 4% = $60
- Total risk: $200 + $120 + $60 = $380
- Total risk %: ($380 ÷ $20,000) × 100 = 1.9%
- Margin utilization: ($2,300 ÷ $20,000) × 100 = 11.5%
What this means: With three positions, total risk is $380 (1.9% of account). This is still safe, but notice how risk accumulates. If all three stop out together (which can happen in correlated markets), you lose 1.9% - still manageable.
Scenario 3: High Risk Portfolio
Multiple high-leverage positions. Shows dangerous risk concentration. ⚠️ High risk
Step-by-Step Calculation:
- BTC risk: $2,000 × 20 × 1% = $400
- ETH risk: $1,500 × 15 × 1.5% = $337.50
- SOL risk: $1,000 × 10 × 2% = $200
- Total risk: $400 + $337.50 + $200 = $937.50
- Total risk %: ($937.50 ÷ $10,000) × 100 = 9.38%
- Margin utilization: ($4,500 ÷ $10,000) × 100 = 45%
What this means: With three high-leverage positions, total risk is $937.50 (9.38% of account). This is dangerous - if all three stop out together, you lose nearly 10% of your account in one day. Margin utilization is also high at 45%, leaving little buffer.
Edge Case Warning: If these positions are correlated (all crypto longs), they'll likely stop out together during a market crash. A 9.38% loss in one day can wipe out weeks of gains. This portfolio is over-leveraged and under-diversified.
What If Variations
Explore how changing parameters affects portfolio risk:
What if all positions are correlated (BTC/ETH/SOL)?
Using Scenario 2: If correlation is 0.8, effective risk increases. Instead of independent risks, they move together. A market crash could stop out all three simultaneously, making the 1.9% risk more likely to occur.
What if I add a 4th position with 2% risk?
Using Scenario 2: Total risk increases from 1.9% to ~3.9% (adding the new position's risk). This exceeds safe limits (5-10%). Each new position multiplies risk, not just adds to it.
What if slippage adds 0.2% to each stop?
Using Scenario 2: Each position's effective risk increases by 0.2%. Total risk jumps from 1.9% to ~2.5%. Slippage can significantly impact actual risk, especially with tight stops.
Frequently Asked Questions
What's a safe total risk level?
Most risk managers recommend keeping total portfolio risk under 5-10% at any time. This allows survival through losing streaks.
Should I count correlated positions together?
Yes — if you're long BTC and long ETH, they often move together. Treat correlated positions as having combined risk.
What if I don't use stop losses?
Without stops, your max loss is your full margin (or more with liquidation). This tool assumes you have defined exit points.
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