Crypto Position Size Calculator
Position Size Calculator FAQ
What is a position size calculator?
It’s a tool that calculates how many units of an asset you should trade to keep risk under control.
Why is position sizing important?
It ensures you never risk more than a fixed % of your account, helping with long-term survival in trading.
What inputs do I need?
Account balance, % risk per trade, entry price, and stop-loss price.
Does this apply to crypto only?
No, position sizing is used in crypto, forex, stocks, and any market where you manage risk per trade.
What’s a safe risk % per trade?
Most traders risk 1-2% per trade. More aggressive traders might risk up to 5%, but that increases drawdowns.
Does leverage affect position size?
Yes. Leverage allows larger positions, but the risk per trade should still be managed using this calculator.
What is a Position Size Calculator?
A Position Size Calculator is a fundamental risk management tool that helps traders determine how many units of a cryptocurrency they should buy or sell in a single trade. The goal is to limit potential losses to a predefined percentage of their account balance, ensuring that no single trade can wipe out a significant portion of capital.
The formula for position size is based on three inputs: account balance, risk percentage per trade, and the difference between entry and stop loss price. For example, if your account balance is $10,000, you risk 2% per trade ($200), and your stop loss is $500 away from the entry price, your position size would be $200 ÷ $500 = 0.4 units.
This tool is widely used in both crypto and forex trading because it enforces discipline and consistency. Instead of guessing how much to trade, it calculates the exact amount that matches your risk tolerance.
Using a position size calculator also helps traders avoid the common mistake of trading too large during volatile market moves. By keeping risk per trade constant, traders can survive losing streaks and remain in the market long enough to benefit from profitable setups.
In crypto, where volatility is often extreme, risk management is even more important than in traditional markets. A position size calculator ensures that you can stay consistent, protect capital, and grow your portfolio safely over time.