Shares = dollar risk ÷ stop per share. Round down, never up.
The stop sets the risk; the share price sets the notional, and buying power caps it.
Read the stop-loss line and both limit rooms in the ticket before you send the order.
The formula
In stocks you size in shares, not lots. Start from what you are willing to lose if the stop hits, then divide by the distance from entry to stop in dollars per share.
Shares = risk in dollars ÷ stop distance per share.
On a $25,000 account at 0.5% risk, your risk is $125 per trade. Here is the same risk on three different stocks:
| Share price | Stop distance | Shares | Notional |
|---|---|---|---|
| $50 | $1.00 | 125 | $6,250 |
| $180 | $2.50 | 50 | $9,000 |
| $420 | $6.00 | 20 | $8,400 |
The $420 stock gives 20.8 shares; round down to 20. Rounding up would risk more than you planned.
Check it against your limits
A $125 loss is small next to the MFC Stocks limits on $25,000. The daily pause there is $500, so it takes 4 full losses to reach it. The max drawdown is $1,250, or 10 losses in a row from the start.
The order ticket shows this for you. Enter the quantity and the stop, and it shows what you would lose if the stop hits, the daily pause room and the max drawdown room in dollars. Fit to limits sets a size that fits inside what is left. Treat that as a ceiling, not a target: your own risk per trade should usually be much smaller.
Buying power and notional
Notional is shares × price: 50 shares of a $180 stock is $9,000 of stock. Leverage on MFC Stocks is 1:2, and the ticket shows your buying power, which caps the total notional you can hold.
A very tight stop can produce a share count your buying power cannot cover. If the formula asks for more stock than you can buy, the stop is probably too tight for that price, so widen it and size down, or pick another setup.
Two more costs belong in your plan. A commission is charged on traded value on each side, so include both sides in your risk. New positions are also capped at a share of the last minute’s traded volume, so a large order in a thin stock may not fill in full. Closing is never capped.
A quick check before every order: shares × price must fit your buying power, and shares × stop must match your risk.
Where to put the stop
Place the stop where your idea is wrong, then size, never the other way round. Common choices are just beyond the prior day’s low or high, beyond a clear intraday level, or a multiple of the stock’s typical range. A stop at a level the market respects tells you something when it is hit; a stop at a round dollar amount usually does not.
Because you are flat every night, you do not need room for overnight gaps. Spreads can be wider in the first minutes after the open, though, so a stop placed right at the open may need a little more space, which means fewer shares.
Quiz
Check yourself
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Lesson complete
Nice work. … of 4 lessons in MFC Stocks done.
MyFundedCapital School
MFC Stocks checklist
Rules as of 17 Oct 2026. Tick each line before your next session.
| Rule | MFC Stocks |
|---|---|
| Profit target | 7% |
| Daily loss limit | 2% daily pause |
| Maximum loss | 5% · trailing |
| Consistency | 35% |
| First payout | after 14 days |
| Then every | 14 days |
| Profit split | 70% → 80% |
1. What are the MFC Stocks challenge rules?
- One phase: a 7% target and at least 3 trading days, then you trade funded.
- The daily pause ends the day, not the account. The max drawdown ends the account.
- Funded: 70% split, first payout on day 14, fee back with payout one.
2. What are the MFC Stocks trading hours and daily cut-off?
- The trading day is fixed: 09:30–16:00 New York time; new entries stop at 15:45 and positions close from 15:50.
- Entries still working at the cut-off are cancelled, and open positions close automatically before the bell.
- Orders set at night trigger only in the session, and a stop entry can fill at the opening price.
3. How do the best day and consistency rules work on MFC Stocks?
- Evaluation: best day up to 40% of total profit. Payout: no day over 35%.
- Share = best day ÷ total profit. A later losing day lowers the total and raises the share.
- Near the limit, cap your daily profit, not only your daily loss.
4. How do you size a position in US stocks?
- Shares = dollar risk ÷ stop per share. Round down, never up.
- The stop sets the risk; the share price sets the notional, and buying power caps it.
- Read the stop-loss line and both limit rooms in the ticket before you send the order.
myfundedcapital.com/learn/
Questions
Should I trade a fixed number of shares?
No. A fixed share count risks very different amounts on a $50 stock and a $400 stock. Size from dollar risk, so every trade costs the same if the stop hits.
Does Fit to limits replace this calculation?
No. Fit to limits sizes the order to the room left in your limits, which is the most you could take. Size from your own risk first and use the ticket to confirm it fits.
Related lessons
Tools and rules
Rules shown here come from the help center and the live rulebook; your program terms apply.
