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Risk Management

Crypto Position Size: How to Calculate Trade Size

Position sizing connects the amount you're prepared to lose on a trade with how far your stop-loss is from your entry. The same risk amount produces a large position with a tight stop and a small one with a wide stop.

5 min read

All prices below are illustrative examples, not current market data.

The inputs

  • Account size: the balance you're trading from.
  • Risk amount: the most you've decided you're willing to lose if the stop is hit. It can be a dollar figure or a percentage of the account that you choose.
  • Entry price: where you plan to buy (or sell short).
  • Stop-loss price: where you'd exit if the trade moves against you.

The formula

Stop distance = |Entry price − Stop-loss price|
Position size (units) = Risk amount ÷ Stop distance
Position value = Position size × Entry price

Worked example

Example

  1. Account $10,000; you decide to risk $150 on this trade
  2. Entry $2,000; stop-loss $1,900 → stop distance $100
  3. Position size = 150 ÷ 100 = 1.5 units
  4. Position value = 1.5 × 2,000 = $3,000

If the stop is hit, the loss is about $150 before fees and slippage.

Why position size changes with stop distance

Same $150 risk at a $2,000 entry.
Stop-lossDistanceUnitsPosition value
$1,900$1001.5$3,000
$1,950$503.0$6,000
$1,800$2000.75$1,500

Halving the stop distance doubles the position size. A position that's too large for the account may require leverage — see Crypto Leverage Explained.

What the formula leaves out

  • Fees on entry and exit add to the loss if the stop is hit.
  • Slippage: in fast markets, a stop order can fill at a worse price.
  • Gaps or exchange outages can move price past your stop.

How to use the Crypto Position Size Calculator

  1. Open the Crypto Position Size Calculator.
  2. Enter your account balance and the risk you've chosen.
  3. Enter your entry and stop-loss prices.
  4. Press Calculate to see units, position value and the share of your account it represents.

To set the stop price from a loss limit, use the Crypto Stop-Loss Calculator; to compare potential reward with that risk, use the Crypto Risk/Reward Calculator.

Run your own numbers

Size a position from your account balance, risk percentage and stop-loss.

Open Crypto Position Size Calculator

Related calculators

Crypto Stop-Loss CalculatorFind a stop-loss price that limits a loss to the amount you choose.Open calculator Crypto Risk/Reward CalculatorCompare potential risk and reward from entry, stop-loss and take-profit prices.Open calculator Crypto Take-Profit CalculatorFind the exit price that reaches a profit target.Open calculator

Frequently asked questions

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