Position size calculator

Worked example

Say the account holds $5,000 and you accept a 1% loss on any single trade. That caps the loss at $50. You want to buy a coin at $2,000 with the stop at $1,960, so the stop sits $40 away.

Divide the $50 by the $40 and you get 1.25 coins. At $2,000 each that is a $2,500 position. At 5x leverage the exchange holds $500 of margin for it. If the stop fills, you lose 1.25 × $40 = $50, which is the 1% you planned.

Now move the stop to $1,900. The distance grows to $100, the size drops to 0.5 coins and the position shrinks to $1,000. The loss at the stop is still $50. A wider stop means a smaller position, and that is the whole point of sizing this way.

The formula

Position size = (account × risk %) ÷ |entry − stop|. Position value = size × entry. Margin = value ÷ leverage.

Leverage does not appear in the size formula. It only changes how much margin you post. Higher leverage also pulls the liquidation price closer to your entry, so check that it stays beyond the stop with the liquidation price calculator.

Questions and answers

How do I calculate position size for a crypto trade?

Multiply your account by the share you are willing to lose, then divide by the gap between entry and stop. A $5,000 account risking 1% with a $40 stop gap gives $50 ÷ $40 = 1.25 coins.

Does leverage change my position size?

No. Risk and stop distance set the size. Leverage only lowers the margin you post, and it moves your liquidation price closer to the entry.

What risk per trade should I use?

Many traders keep it between 0.5% and 2% of the account. At 1%, ten losses in a row cost about 10%, which most accounts can recover from.

Are fees included?

No. Add a little to the stop distance for fees and slippage, or lower the risk slightly, if you trade small moves or thin markets.

More calculators: liquidation price calculator, funding fee calculator, crypto profit calculator.