📉💸 Hey everyone, it's "forgot to live" here. Ever hit that "buy" button on futures without knowing exactly how much you stand to lose? I did, and it cost me. Let's fix that for you. Calculating your exact dollar risk *before* entry is non-negotiable.
Here's the formula and a real example:
**Risk ($) = (Entry Price - Stop Loss Price) x Position Size (in units)**
Let's say your account has $1000, and you want to long BTC at $60,000 using 10x leverage. You decide your stop loss is $59,800.
First, determine your position size. With 10x leverage on $1000, your max notional is $10,000. If you open a 0.1 BTC position:
Position Value = 0.1 BTC * $60,000 = $6,000. (This needs $600 margin, well within your $1000 account).
Now, plug it in:
Risk ($) = ($60,000 - $59,800) x 0.1 BTC
Risk ($) = $200...
Here's the formula and a real example:
**Risk ($) = (Entry Price - Stop Loss Price) x Position Size (in units)**
Let's say your account has $1000, and you want to long BTC at $60,000 using 10x leverage. You decide your stop loss is $59,800.
First, determine your position size. With 10x leverage on $1000, your max notional is $10,000. If you open a 0.1 BTC position:
Position Value = 0.1 BTC * $60,000 = $6,000. (This needs $600 margin, well within your $1000 account).
Now, plug it in:
Risk ($) = ($60,000 - $59,800) x 0.1 BTC
Risk ($) = $200...