BullWhat is position size?
Position size is the total value of your trade, not the margin you put up. If you open a 1,000 USDT position with 10x leverage, your margin is 100 USDT but your profit and loss move with the full 1,000 USDT. That is why sizing comes before leverage: the size decides how much you lose when the stop loss is hit.
Most experienced traders risk a fixed small part of their account on each trade, often 1% to 2%. This calculator turns that rule into a number you can type straight into the order form.
How to use this calculator
- Enter your account balance in USDT.
- Choose how much of the account you are willing to lose on this trade (risk %).
- Enter your planned entry price and stop loss. A stop below the entry means a long, above means a short.
- Optionally add your leverage to see how much margin the trade will lock.
Formula
Example
Your balance is 1,000 USDT and you risk 2%, so the most you want to lose is 20 USDT. You plan to buy BTC at 60,000 with a stop at 58,800, which is 2% below the entry. Position size = 20 / 0.02 = 1,000 USDT, or about 0.016667 BTC. With 10x leverage that trade needs 100 USDT of margin. If the stop is hit, the loss is 1,000 x 2% = 20 USDT, exactly the planned risk.
Why leverage does not change your risk
Notice that leverage does not appear in the position size formula. Higher leverage only lowers the margin you need to open the same position. The loss at your stop loss stays the same. What leverage does change is how close your liquidation price sits to your entry, so always check it with the liquidation price calculator and make sure liquidation is further away than your stop.
Tips
- Keep risk per trade small enough that a losing streak of 5 to 10 trades does not hurt your account badly.
- Place the stop where your trade idea is wrong, then size the position to fit. Do not move the stop to fit a bigger size.
- Remember that fees and slippage add a little to the loss. See the trading fee calculator.
Frequently asked questions
What is a good risk per trade?
Many traders use 1% to 2% of the account per trade. Lower risk means smaller swings and more room to survive losing streaks.
Does leverage change my position size?
No. Position size comes from your risk amount and stop distance. Leverage only changes how much margin is locked to open that size.
Can I use this for spot trading?
Yes. Ignore the leverage field. The position size result is the amount of USDT to buy with.
Why is my margin higher than my balance?
Your stop is very tight compared to your risk, so the position is large. Use higher leverage, a wider stop or a lower risk %.
Results are estimates for education only and are not financial advice. Always check the numbers on your exchange before you trade.
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