Understanding Position Sizing

Position sizing is a critical aspect of risk management in cryptocurrency trading. By properly calculating your position size, you can ensure that you’re only risking a predetermined percentage of your trading capital on any single trade.

How to Use This Calculator:

1. Enter your total account balance and select the currency
2. Set your risk percentage (1-2% is typically recommended for beginners)
3. Enter your planned entry price and stop loss price based on your technical analysis
4. Optionally enter your take profit target to calculate risk-to-reward ratio
5. Adjust leverage if you’re trading on a margin or futures exchange
6. Click “Calc