Daily Loss Exposure Cap Calculator

From the daily tolerable loss and the asset's daily move %, derive the maximum allowed exposure for a one-day risk budget.

Results

Fill in the inputs and click Calculate.

Risk disclaimer

Based on the move you set; gaps and correlation breaks are not modelled.

What does this cap answer?

If price moves adversely by the move you enter, loss ≈ exposure × move.

Exposure cap = tolerable loss ÷ move — the larger the move, the smaller the exposure you can run.

How to use

  1. Enter the loss you can tolerate in a day.
  2. Enter the asset's daily move (e.g. 3%).
  3. Click Calculate for the suggested exposure cap.

Formula

  • Exposure cap = daily loss ÷ (daily move ÷ 100)

Example

Daily loss 300 with a 3% daily move → exposure cap 10,000.

At a 6% move the same budget allows only 5,000.

FAQ

Guaranteed to stay in budget?

No. Gaps and extreme moves can exceed the estimate — keep a buffer with stress scenarios.