In this guide
The formulaThe percentage is an assumption, not an answerWhy rounding mattersWhat the simple model omitsThe formula
Risk budget equals account value multiplied by a percentage you choose. Risk per unit equals the absolute difference between entry and stop. Dividing the budget by per-unit risk produces a raw unit count.
The percentage is an assumption, not an answer
Many educational resources promote a fixed percentage as a rule. PreBreakout does not. The calculator asks you to provide the percentage because selecting an appropriate risk budget depends on circumstances outside a simple formula.
Why rounding matters
If the raw result is 50.8 units and the instrument cannot be traded fractionally, 50 whole units fit inside the modeled budget while 51 may exceed it. The calculator rounds down to whole units and shows the theoretical exposure separately.
What the simple model omits
Gap risk, slippage and execution can make actual loss larger than the planned entry-stop distance. Leverage and broker margin rules can also constrain position size independently of the risk formula.