Crypto Position Size Calculator

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 %.

Crypto Position Size Calculator

Position Size:

💡 Information: A typical risk percentage per trade is between 1-5%, anything higher than that is considered too high risk.

How to calculate crypto position size

Below is a step-by-step on how to use the crypto position size calculator:

  1. Add your total account size
  2. Input the price of the cryptocurrency
  3. Select your stop loss price
  4. Choose your maximum risk percentage
  5. 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?

Crypto position size calculator illustration

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.

How the crypto position size calculator works

The formula for calculating position size is:

Position size = (account size x maximum risk percentage / (entry price – stop loss price)) x entry price

These inputs are necessary to use the calculator:

  • Total account size
  • Entry price
  • Stop loss price
  • Maximum risk percentage

It is important to add all the correct inputs for the calculator to work.

Should you outsize the risk, you will get a warning sign saying “Position size is larger than total account size”.

This means that the maximum risk percentage is too high or the distance between the entry price and the stop loss price is too wide.

In this case, try to lower the maximum risk percentage or reduce the distance between the entry price and the stop loss price.

For advanced traders, use our risk reward ratio calculator to double-check your risk reward ratio.

What are the benefits for traders?

When you are taking the next step in your trading journey you will soon realize how important position sizing is.

This is where the position size calculator crypto comes in very handy to automate the process for you.

Below are key benefits in my opinion:

  1. Accurate position sizing: Choosing the right position size is an important aspect of trading cryptocurrencies successfully. This helps you not only reduce risk but also on some occasions, increase your profitability. Some traders are too conservative and they leave a lot of money on the table by trading position sizes that are too small. The calculator helps you get a perfect size.
  2. Risk management: If your risk management in leverage trading is off, everything will be off, and it always starts with the position size. Entering the crypto market with the right size can help you manage your risk much better by simply lowering your risk.
  3. Efficient trading: If you constantly calculate your position size for crypto manually it will take a lot of time. The calculator speed things up by automating this process completely.
  4. Consistency in trading strategies: Your leverage trading plan needs to be free of errors, especially when it comes to sizing. By using a calculator to help you out, you can accurately calculate your positive expectancy when trading.
  5. Increased confidence: This is a great boost for a beginner. Knowing that you can precisely calculate your Bitcoin position size gives you a lot of confidence since you don’t have to worry about how big your position should be and can instead focus on how and when to enter.

Common mistakes to avoid

Sometimes traders add incorrect values which will make the calculator mess up the result.

Always double-check your inputs before you jump into the market.

Also, if you are using BYDFi, for example, which is the best crypto leverage trading platform USA you might have difficulties applying the calculator with leverage.

Also, as mentioned above, adding a maximum risk percentage that is too high or using a distance between the entry price and the stop loss price can give you a result that is larger than your total account value.

Commissions and fees are also something that is not included in the calculation and can throw a trader off in the beginning.

If you know your leveraged trading fee, simply deduct the total fee from the position size to see exactly how much you will pay for each trade.

In the end, a position size calculator crypto is a very helpful tool that will make your life easier as a trader, make sure to incorporate it into your arsenal.

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Anton Palovaara
Anton Palovaara

Anton Palovaara is an expert leverage trader with decades of experience trading stocks and forex through proprietary software. After shifting over to leveraged crypto trading in derivatives and futures contracts he has become an influential figure in the cryptocurrency industry. Anton's trading strategies have helped numerous investors achieve significant returns on their crypto investments. With a keen eye for market trends and a deep understanding of technical analysis, Anton has developed a reputation as a shrewd trader who is not afraid to take calculated risks. He has a track record of predicting market movements accurately, and his insights are highly sought after by crypto traders and investors alike.

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