← Glossary

Risk per share

Risk per share is |Entry − Stop| — the same formula as R, expressed as a per-share dollar figure. It's the denominator in the share-count calculation: fewer dollars at risk per share means more shares fit inside your risk budget, and a wider stop means fewer shares for the same dollar risk. This is the number that visibly shrinks the position as a stop is widened.

R = |Entry − Stop|

This explains what risk per share measures. It isn't investment advice — see the disclaimer.