Crypto Position Size Calculator

How to Calculate Crypto Position Size

Position sizing is the foundation of risk management in crypto trading. This calculator helps you determine exactly how much to risk on each trade based on your account balance, risk tolerance, entry price, and stop loss level.

The formula accounts for leverage, which multiplies both your potential gains and losses. Higher leverage means your liquidation price moves closer to your entry price — at 10x leverage, a 10% move against you can wipe out your position entirely.

Why Position Sizing Matters

Oversizing compounds losses quickly. A fixed-fraction approach reduces the dollar amount at risk as the account declines, but it does not prevent loss or guarantee recovery.

• 1% risk per trade: about 90.4% of starting equity remains after 10 consecutive full-risk losses
• 2% risk per trade: about 81.7% remains
• 10% risk per trade: about 34.9% remains
• 25% risk per trade: about 5.6% remains

TargetHit publishes five strategy records so you can inspect their trade history. Whether you trade manually or claim an available VIP Auto-Trade seat, position sizing and risk limits remain essential.

Understanding Liquidation Risk

When trading with leverage, your exchange will automatically close your position (liquidate) if the price moves against you by a certain percentage. The calculator shows your estimated liquidation price and warns you when it's dangerously close to your stop loss.

If your liquidation price is closer to your entry than your stop loss, you're at risk of getting liquidated before your stop loss can trigger — a common mistake that costs traders millions every day.