So a tighter SL, gives you a bigger position size for the same risk amount.All this is to ensure that you never exceed the maximum allowed risk over your total capital in a single trade. In leveraged trading your position size is also based upon the stop-loss price. Calculated position sizes are key to sound risk management.

For example, if you buy 1 Bitcoin or another crypto coin at 10x leverage, that doesn’t mean that your position size … For example, if you buy 1 Bitcoin or another crypto coin at 10x leverage, that doesn’t mean that your position size has increased to 10. The third option is to choose the price that you want to use as your stop. As you see, the position size, your total capital, and the SL level are all tightly connected.

Let me explain with an example: As you see, the position size, your total capital, and the SL level are all tightly connected. Copyright 2020 Tradingcryptocourse.com we need to manage our money (our entire account/ total trading capital). The leverage you apply doesn’t influence your position size. Let me explain with an example: As you see, the position size, your total capital, and the SL level are all tightly connected. Trading with leverage is possible on most exchanges, but these days I prefer using Binance futures and BTC/USDT. This eventually results in risking too much of your total account in a wrong trade, and wiping out many previous winning trades. All rights reserved. The position size is calculated with the following formula: [(Account size * […] The Position Size calculator can be accessed by taking the following steps: We’ll look at each section individually to show you how important this tool can be and how you can put it to work immediately. The Position Size calculator can be accessed by taking the following steps: Click the Tools tab (1) in the main menu at the top of the page. So when you use ALL of your capital to borrow money against, then you also lose all of your capital on liquidation.

Click on Position Size (2) in the submenu. As a trader we need to practice Money Management. But some traders take such a position size, that when liquidation entirely wipes out their position, they never lose more than the max. The Position Size Calculator is a powerful tool you can use to research new & current cryptocurrencies. 5.2: Technical Analysis: Support and Resistance, 5.6: Technical Analysis: Candlestick Patterns, 5.9.1: Technical Analysis: Elliott Wave Theory, 5.9.2: Technical Analysis: Fibonacci Retracements.

The last option is to use the Crypto State Indicator Stop Loss setting.