Dollar Risk Per Share

Dollar risk per share is |entry − stop|. Size is dollar risk divided by that figure, shares rounded down. Run it on the live risk calculator; treat the unit as shares. This is sizing math, not a trade.

Educational only. Not financial advice. EXAMPLE numbers below are labeled, not a tape print and not a recommendation. There is no stock-native calculator on denntech.io. The live tool is the crypto-branded risk calculator — treat the unit as shares, round down.

Formula

Write the three lines before you send the order. Do not invert them so a round lot comes first.

1. Dollar risk = Account × Risk %.
2. Dollar risk per share = |Entry − Stop|.
3. Shares = Dollar risk ÷ Dollar risk per share, then round down. Actual dollar risk = Shares × Dollar risk per share.

Risk is the planned loss if the stop fills at the stop. It is not the notional (shares × entry). Confusing those two is how a $2,500 position feels “half invested” while the stop is $500 away. See Risk Management 101 for Stocks for the 1% rule as a course, not as a required rate. 1% on this page is EXAMPLE only.

Worked example (EXAMPLE only)

Same tape as the hours page. Account $10,000, risk 1% → $100 dollar risk. Entry $53.00, stop $51.50 → $1.50 per share. 100 ÷ 1.50 = 66.666… → 66 shares, round down. Actual dollar risk = 66 × 1.50 = $99. Do not take 67 shares: 67 × 1.50 = $100.50, which is over the $100 budget.

Gap percent is a different number. Prior close $50.00 to $53.00 is (53 − 50) ÷ 50 × 100 = 6%. Run that on the percentage-change calculator. A 6% gap is not 6% account risk. Size still comes from |entry − stop|.

Input	EXAMPLE
Account	$10,000
Risk %	1% (EXAMPLE, not a required rate)
Dollar risk	$100
Entry	$53.00
Stop	$51.50
$ risk / share	$1.50
Raw shares	66.666…
Shares (round down)	66
Actual $ risk	$99
Notional	66 × $53.00 = $3,498

Same math, shares, round down. Do not use a $25,000 account in this example — that number is the retired PDT floor, not a sizing input. See PDT (historical) and intraday margin (RN 26-10).

Why round down

U.S. common stock is sized in whole shares on this page. Rounding up spends more than the dollar-risk budget. Partial shares are a broker product; do not assume them. If the raw quotient is 66.01, you still take 66. If the stop is so wide that floor(dollar risk ÷ risk per share) is 0, you skip — you do not widen the budget to force a round lot.

What this page is not

• Not PDT math. No 4 day-trade count, no $25,000 day-trade floor, no 4× buying power. Those are historical under FINRA RN 26-10.
• Not an IMD calculator. /tools/intraday-margin is a build, not a live tool. Intraday margin deficit is the member’s determination. House buying power is broker-dependent.
• Not a stock-native calculator. Shared tool UI; unit = shares.
• Not broker hours. Official clocks: U.S. session hours 2026. A stop that is routine in Core can gap in Early or Late.
• Not a live scanner. /stock-scanner is coming soon. This page is sizing, not a scan.

Stop % vs dollar risk per share

Stop as a percent of entry = |Entry − Stop| ÷ Entry. In the EXAMPLE: 1.50 ÷ 53.00 ≈ 2.83%. Useful for comparing width. It does not replace dollar risk per share when you size shares. Two names with the same 2.83% stop still need different share counts if prices differ. Always convert back to dollars per share, then divide dollar risk, then floor.

FAQs

1. What is dollar risk per share? The absolute difference between your entry and your stop, in dollars per share.
2. Why round down? Shares are whole on this page. Rounding up would spend more than the dollar-risk budget.
3. Can I use the crypto calculator for stocks? Yes for this formula only. Treat the unit as shares, round down. There is no stock-native calculator on denntech.io.
4. Is 1% required? No. 1% is EXAMPLE only, not a recommendation and not a FINRA figure. Course 7 discusses it as a beginner cap; it is still not a legal rate.
5. Does this replace PDT or buying power? No. This page is stop-distance sizing. Intraday margin is a different clock: Intraday Margin Requirements (post-PDT). Do not size from obsolete 4× / $25k math.

Related: stock courses hub, stock glossary.

Not financial advice. Trading stocks can result in loss of capital, including loss of principal. Stops are not a fill guarantee through a gap. Verify house margin rules with your firm. Cite RN 26-10 for the post-PDT framework, not for this sizing formula.