Crypto Position Size Calculator

Position sizing is the process of determining how much capital to allocate to a specific trade based on your risk tolerance, account size, and the trade's risk-reward parameters. Proper position sizing helps manage risk and prevent significant losses.

Leverage multiplies your buying power, allowing you to control larger positions with less capital. However, it also amplifies both profits and losses. Higher leverage increases liquidation risk and requires more precise position sizing to manage risk effectively.

The 1% rule suggests risking no more than 1% of your total account balance on any single trade. This conservative approach helps preserve capital during losing streaks and allows for long-term consistency in trading.

Position Size = (Account Balance × Risk Percentage) / (Entry Price - Stop Loss Price). For leveraged positions, multiply by leverage. Always account for trading fees and slippage in your calculations.

Liquidation price is the price level at which your position gets automatically closed by the exchange due to insufficient margin. It's calculated based on your leverage and entry price. Monitoring liquidation price helps avoid forced position closures.

Trading fees (maker/taker fees) reduce your effective position size and should be factored into risk calculations. Higher fees mean you need larger price movements to break even, affecting your optimal position size.

Percentage risk is generally recommended as it scales with your account size. Fixed amount risk can be useful for specific strategies but doesn't adapt to changing account balances. Most professional traders use percentage-based risk management.

For long positions, risk is calculated as entry price minus stop loss. For short positions, risk is stop loss minus entry price. The calculator automatically adjusts for position direction in all calculations.