Why size crypto positions by risk?
Crypto moves fast. A 5% daily swing in Bitcoin or a 10% swing in an altcoin is normal, and leverage makes it larger. Many traders pick a position size by feel or by how much margin they have. That is how small mistakes turn into large losses.
Risk-based sizing flips the process. You decide how much of your account you are willing to lose if your stop is hit, then let the stop distance decide how many coins you can buy. Leverage only changes how much margin you post, not how much you lose at the stop.
This calculator is built for linear, USDT-margined perpetual futures and spot positions.
Position size formula
Risk amount = Balance × Risk % ÷ 100
Quantity = Risk amount ÷ |Entry − Stop|
Notional = Quantity × Entry
Margin = Notional ÷ Leverage
The quantity is in coins (BTC, ETH, SOL and so on). The notional is the full position value in USDT.
Worked example
You have 2,000 USDT, want to risk 2% per trade and plan to go long ETH at 3,200 with a stop at 3,100. You use 5x leverage.
- Risk amount = 2,000 × 2 ÷ 100 = 40 USDT
- Stop distance = 3,200 − 3,100 = 100
- Quantity = 40 ÷ 100 = 0.4 ETH
- Notional = 0.4 × 3,200 = 1,280 USDT
- Margin at 5x = 1,280 ÷ 5 = 256 USDT
If ETH hits 3,100, you lose 0.4 × 100 = 40 USDT, exactly 2% of the account, before fees.
Now change only the leverage to 10x. Quantity and loss at the stop stay the same; margin falls to 128 USDT. Higher leverage frees margin but brings the liquidation price closer, which is the real trade-off.
Leverage does not change your risk – the stop does
This is the most common misunderstanding in crypto futures. At 20x you can open a bigger position with the same margin, but if you keep the same risk amount and stop, the calculator gives you the same quantity at any leverage. The danger comes when traders use leverage to increase quantity without moving the stop, which multiplies the loss at the stop.
One thing leverage does change: the liquidation price. Your stop must sit well before liquidation, or the exchange closes the trade first. Using the approximate isolated-margin formula with a 0.5% maintenance margin rate, a 5x long from 3,200 liquidates near 2,576, far below the 3,100 stop. Check your own numbers with the liquidation price calculator.
How to use this calculator
- Enter your account balance in USDT (or your stablecoin).
- Enter your risk per trade as a percentage, for example 1%.
- Enter the entry price and stop-loss price.
- Enter your leverage.
- Read the quantity (coins to buy or sell), notional value and required margin.
- Confirm that the stop sits safely before your liquidation price.
Fees and slippage
The result ignores trading fees and slippage. On a market entry and stop exit, taker fees on both sides can add a noticeable amount, especially on tight stops where the notional is large compared with the risk. If you want a buffer, reduce the risk % slightly or add the expected fee to the stop distance. The crypto futures PnL calculator shows the effect of fees on a full trade.
Choosing a risk percentage
Many traders risk 0.5–2% per trade. A smaller figure keeps losing streaks manageable: ten losses in a row at 1% costs roughly 10%, while ten losses at 5% costs about 40%. See how that affects your recovery maths with the drawdown calculator.
FAQ
Does leverage increase my risk?
Only if you use it to increase quantity. With a fixed risk amount and stop, the loss at the stop is the same at 3x or 50x. Higher leverage does move your liquidation price closer to entry.
Can I use this for shorts?
Yes. The formula uses the absolute distance between entry and stop, so it works for longs and shorts. For a short, the stop sits above entry.
Why is my notional much larger than my risk?
A tight stop lets you hold a large position for a small risk. For example, a 1% stop distance means the notional is about 100 times the risk amount. That is normal, but make sure the margin and liquidation price are acceptable.
Does this work for spot trading?
Yes. Use 1x leverage. The quantity is the number of coins to buy, and the margin equals the full notional.
Should I include fees in the risk amount?
For a precise figure, yes. Estimate entry and exit fees and either subtract them from the risk amount or widen the stop distance by that amount.
Final note
Risk-based sizing keeps every crypto trade at a known, chosen loss. Set your risk first, place a logical stop, and let the quantity follow.
Trading leveraged products carries a high risk of loss. Results are estimates; check your broker's contract specifications.