Position Size Calculator

Calculate the right position size for any trade based on your account size, risk tolerance, and stop-loss distance.

Position Size Calculator
Risk-based position sizing — never risk more than you can afford to lose.
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What is Position Sizing?

Position sizing is the process of determining how large a trade to take based on how much you are willing to lose if it goes wrong. It is the foundation of professional risk management and the single biggest factor in long-term account survival.

The Position Size Formula

Risk Amount   = Account Size × Risk %
Position Size = Risk Amount / Stop Loss %

With leverage:
Notional Size = Position Size × Leverage

Example: $10,000 account, 1% risk, 3% stop-loss:

Risk Amount   = $10,000 × 0.01 = $100
Position Size = $100 / 0.03   = $3,333

At 5× leverage → Notional = $16,667
Max loss if SL hit = $100 (still 1% of account)

The 1% Rule — Why It Works

Risking 1% per trade means you need 100 consecutive losing trades to lose everything. In practice, even a 30% win rate with a 2:1 reward-to-risk ratio is profitable long-term at 1% risk. The math favors survival over aggression.

Traders who risk 5–10% per trade can double their account fast — but they also face ruin from a short losing streak. Capital preservation is the prerequisite for compounding.

Frequently Asked Questions

How do I calculate position size in crypto?
Position Size = (Account Size × Risk %) / Stop Loss %. For example: $10,000 account, 1% risk, 2% stop-loss = ($10,000 × 0.01) / 0.02 = $5,000 position. If you apply 5× leverage, your notional exposure is $25,000, but your maximum loss remains $100 (1% of account) if the stop-loss is hit.
What percentage should I risk per trade?
Professional traders typically risk 0.5–2% per trade. At 1% risk, you can lose 50 consecutive trades and still have 60% of your capital. At 5% risk, 10 consecutive losses wipe 40% of your account. The right percentage depends on your win rate and risk-reward ratio, but 1–2% is the standard starting point.
Does leverage change my position size?
Leverage changes your notional exposure but not your dollar risk — as long as you set your stop-loss correctly. With 5× leverage, you use less margin to control a larger position, but if your stop-loss is at the right level, your maximum loss in dollars remains the same. The danger is placing your stop-loss too wide with leverage.
What is the Kelly Criterion?
The Kelly Criterion is a mathematical formula for optimal position sizing: Kelly % = Win Rate − (1 − Win Rate) / Win-Loss Ratio. It maximizes long-term growth but can lead to large drawdowns. Most traders use half-Kelly or fixed percentage rules (1–2%) for more conservative risk management.
What happens if I don't use position sizing?
Without position sizing, each trade risks a random and uncontrolled amount of your capital. A few large losing trades can wipe significant portions of your account. Consistent position sizing is one of the few edges that is fully within a trader's control — it doesn't require predicting the market correctly.

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For informational purposes only. Not financial advice.