Crypto Position Size Calculator
Size any trade from your account risk and stop distance, then see the margin required
Risk Amount = Account Balance x Risk%
Position Size (Units) = Risk Amount / |Entry - Stop|
Notional = Units x Entry Price
Required Margin = Notional / Leverage
What is Position Sizing?
Position sizing decides how many units or how much notional to trade so that a single losing trade costs a controlled, pre-planned amount. Instead of picking a round position size, you start from the only two numbers that define your downside: how much of your account you are willing to lose, and how far away your stop loss sits. The position size falls out of those two inputs. Good sizing is what keeps a normal run of losing trades from turning into an account-ending drawdown, and it is the single habit that most separates traders who survive from those who blow up.
How to Calculate Position Size
Start with your risk amount: account balance multiplied by the percent you are willing to risk, for example 1% of 10,000 USD is 100 USD. Next find your per-unit risk, the absolute distance between your entry price and your stop loss. Dividing the risk amount by the per-unit risk gives the number of units to trade, and multiplying that by the entry price gives the notional position size. A wider stop means a smaller position for the same risk; a tighter stop allows a larger one. The math is the same for longs and shorts, only the side of the stop changes.
How Much to Risk Per Trade
Fixed-fractional risk, usually between 0.5% and 2% of the account per trade, is the standard approach. Risking 1% means it takes a long, unlikely streak of losses to do serious damage, and because the risk is a fraction of the balance, your position sizes shrink automatically during a drawdown and grow back as you recover. Avoid the temptation to size up after a loss to win it back; that is how a controlled drawdown becomes a blow-up. Pick a risk percent you can hold through a losing streak without emotional decisions, and keep it constant.
Leverage Does Not Set Your Risk
A common mistake is to believe that higher leverage means higher risk. It does not. Your risk on a trade is fixed by your position size and the distance to your stop loss. For a given position size and stop, leverage only changes how much margin is locked up to hold the position: 10x locks a tenth of the notional, 20x a twentieth. This calculator sizes the position from your risk first, then reports the margin the chosen leverage would require, so you can confirm the position fits your account. If the required margin is uncomfortably large relative to your balance, the trade is too big regardless of the leverage number.