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Portfolio Heat Calculator

Total risk across every open position.

Total portfolio heat4.0%
Risk if every stop hits$400
Equity after simultaneous stop-out$9,600

Uncorrelated math on correlated positions understates risk — four EUR pairs at 1% each behave closer to one 4% position.

Educational tool only — not financial advice. Verify figures with your broker.

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What is the Portfolio Heat Calculator?

The Portfolio Heat Calculator is a free aggregate-risk tool for traders holding several positions at once. It answers a single question: what total percentage of your account equity is on the line across all open trades right now, and what would be left if every stop-loss were hit at the same time.

How to use it

  1. Enter the number of Open positions you currently hold (default is 4).
  2. Set Risk per trade (%) — how much of your equity a single position loses if its stop is hit (default 1%).
  3. Enter your Account equity ($) so the dollar figures are accurate.
  4. Read Total portfolio heat, the headline result: it is the combined percent of equity at risk across every open position.
  5. Check Equity after simultaneous stop-out to see the account balance you'd be left with in the worst case where all stops trigger together.

How it's calculated

The calculation is straightforward and deterministic. Total portfolio heat is simply Risk per trade (%) multiplied by the number of Open positions — four positions at 1% each gives 4% heat. Risk if every stop hits converts that percentage to dollars against your equity, and Equity after simultaneous stop-out subtracts that dollar risk from your Account equity.

Frequently asked

What is portfolio heat in trading?

Portfolio heat is the total percentage of your account at risk across all open positions combined. A portfolio heat calculator adds up the per-trade risk of every position so you can see aggregate exposure rather than judging each trade in isolation.

What is a safe level of portfolio heat?

There's no universally safe number, but many traders cap total heat somewhere around 5–6%. This tool shows you where your current positions land; the right ceiling depends on your strategy, correlation between trades, and risk tolerance.

Does the portfolio heat calculator account for correlated positions?

No. It treats each position as independent, so correlated trades will show lower heat than they truly carry. Four EUR pairs at 1% each display as 4% but can behave much more like a single 4% position.

Keep in mind: This tool assumes your positions are independent, which understates real risk when they aren't. Correlated positions — four EUR pairs, or several trades that move together in the same market regime — behave closer to one large position, so the heat number is a floor on your true exposure, not a guarantee of safety, and it says nothing about profit.

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