The formula behind position sizing
Position size is the one variable that keeps a single bad trade from ending your account. The formula is simple: position size (in coins) = amount you're willing to risk ÷ the distance from your entry to your stop-loss. If you'll risk $100 and your stop is $500 below entry, you buy 0.2 coins — because a move to your stop loses exactly $100 regardless of the coin's price. This calculator does that maths instantly and also converts the result into a dollar position value and the margin required.
Why risk a fixed percentage
Professional traders rarely risk more than 1–2% of their account on any single trade. Fixed-fractional risk means a losing streak shrinks your position sizes automatically, protecting your capital, while wins compound your base. Risking 1% means you'd need roughly 100 consecutive losses to be wiped out — statistically almost impossible with any real edge. Switch between percentage and fixed-dollar risk depending on how you plan your trades.
Stop distance drives everything
The closer your stop-loss is to your entry, the larger the position you can take for the same dollar risk — and vice versa. That's why a tight, well-placed stop is so powerful: it lets you take meaningful size without increasing risk. The calculator shows your stop distance as a percentage so you can compare setups. Just remember that a stop placed too tight gets hit by normal volatility, so balance size against a stop that gives the trade room to work.
Leverage, margin and liquidation
Leverage doesn't change how much you risk on a properly-sized trade — your stop-loss still caps the loss — but it does change the margin you must post and introduces liquidation risk. The tool shows the margin required for your position and an approximate liquidation price (isolated margin, excluding exchange maintenance buffers). If required margin exceeds your balance, you're over-leveraged for that size and the calculator warns you.
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- Risk-based sizing by % or fixed dollar amount
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- Long and short position support
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- Margin and liquidation price for leverage
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- Built-in reward-to-risk to your target
