Worked example
You have a 10,000 account and accept losing 1% on a trade. You plan to buy at 50,000 with a stop-loss at 48,000.
| Amount at risk: 1% of 10,000 | 100.00 |
|---|---|
| Loss per coin: 50,000 − 48,000 | 2,000.00 |
| Position size: 100 ÷ 2,000 | 0.05 coins |
| Position value: 0.05 × 50,000 | 2,500.00 |
You would put 2,500 into the trade, or 25% of your balance. If the stop-loss fills at 48,000, you lose 100 before fees.
How the calculation works
Amount at risk = balance × risk %
Loss per coin = distance between entry and stop-loss
Position size = amount at risk ÷ loss per coin
Position value = position size × entry price
A wider stop-loss means a smaller position, and a tighter one means a larger position. The amount at risk stays the same either way.
Why it matters
Position size is the part of a trade you fully control. Sizing from your stop-loss, rather than from a feeling about the coin, means a run of losing trades takes small, known bites out of your account instead of one large one.
Common questions
What risk percentage should I use?
That is your decision. Many traders talk about 1% to 2% per trade, but the right figure depends on your account, your experience and how much loss you can accept. This site doesn’t make that call for you.
Does this work for short trades?
Yes. Put your stop-loss above your entry price and the calculator treats the trade as a short.
Why does the result say I need leverage?
Your stop-loss is so close to your entry that the position would be worth more than your balance. You can widen the stop-loss, accept a smaller position, or lower your risk.
Could I lose more than the amount at risk?
Yes. A stop-loss can fill at a worse price in a fast market, and fees are not included in the result. Treat the amount at risk as your plan, not a guaranteed limit.