Use our crypto position size calculator to calculate the lot size of your crypto position based on your entry total account size, entry price, stop loss price, and maximum risk in %.
How to calculate crypto position size
Below is a step-by-step on how to use the crypto position size calculator:
- Add your total account size
- Input the price of the cryptocurrency
- Select your stop loss price
- Choose your maximum risk percentage
- Click “Calculate”
The result you are given is the total position size that you should use for any cryptocurrency you are trading to stay in line with your maximum risk profile.
The formula for calculating your position size is done by first choosing the account size(risk capital), secondly, you want to select the entry price for your cryptocurrency.
Then you add the stop loss price.
Finally, you add the maximum allowed risk for the position.
The maximum allowed risk is always calculated on your total account value.
For example, if your account size is $2000 and you choose a maximum risk of 1%, which is $20, the calculator will give you a position size for crypto that stays within that risk limit.
The calculation will of course change depending on how far away your stop loss is from your entry price.
What is a crypto position size calculator?
A crypto position size calculator is a tool that helps you calculate the right position size when trading cryptocurrencies such as Bitcoin or Solana.
The position size is based on your total account size, the price of the cryptocurrency, the stop loss price, and your maximum risk in percentage.
The immediate benefit of calculating your position size in crypto is that you ensure that you don’t overleverage or open positions that are inherently too risky for your own account size.
Successful crypto trading boils down to the details and the position calculator helps you take control over how to size your trade based on the risk of your crypto leverage trading approach.