Calculate the optimal crypto position size based on your account balance, risk percentage, entry price, and stop loss.
Position sizing is the single most important skill separating profitable traders from losers. A trader with a mediocre strategy but excellent position sizing will outperform a trader with a great strategy and reckless sizing.
The Core Formula
Risk Amount = Account Size × Risk% Position Size (units) = Risk Amount ÷ |Entry − Stop Loss| Position Value (USD) = Position Size × Entry Price
Example: $10,000 account, 1% risk, entry at $50,000, stop at $49,000.
Why Stop Loss Distance Matters
A wider stop requires a smaller position. A tighter stop allows a larger position — at the same dollar risk. This is why experienced traders say "the stop dictates the size."
Scaling Position Sizing to Your Goals
Most professional traders risk 0.5%–2% per trade. Higher win rates and better R:R ratios allow riskier sizing. Beginners should start at 0.5% until they have a proven track record.
Position Sizing
Calculating how much of your account to risk on a single trade to keep losses within your predefined risk limit.
Risk Per Trade
The maximum percentage or dollar amount of your account you are willing to lose on a single trade — the foundation of sound position sizing.
Stop-Loss
An order that automatically closes your position at a specified price to limit losses on a trade.
Risk Management
The system of rules and practices a trader uses to protect capital — encompassing position sizing, stop-loss placement, drawdown limits, and maximum daily loss rules.
Position sizing is the process of determining how many units of a cryptocurrency to buy or sell on a given trade, based on your account size and maximum acceptable risk. Proper position sizing ensures that no single trade can devastate your account.
The 1% rule states that you should never risk more than 1% of your trading capital on a single trade. This means even a streak of 10 losing trades only costs you ~10% of your account, keeping you in the game.
Position Size = (Account Size × Risk%) ÷ |Entry Price − Stop Loss Price|. This gives you the number of units to buy. Multiply by the entry price to get the total position value in USD.
No. Position size should vary based on the distance between your entry and stop loss. A tighter stop loss allows a larger position while still respecting your fixed risk amount.
Risk:Reward
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Liquidation Price
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Fee Calculator
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