【One-minute explainer】How large should a position be for a single trade?
A common position-sizing formula: position notional value ≈ total capital × risk percentage per trade ÷ stop-loss distance.
Keeping the risk per trade small enough means that even after several consecutive wrong calls, you’ll still have enough capital in your account and won’t take a serious hit from one or two mistakes.
Related asset: $BTC , current price 81470 (24h -0.74%).
Don’t bet all your savings on a single call.
A common position-sizing formula: position notional value ≈ total capital × risk percentage per trade ÷ stop-loss distance.
Keeping the risk per trade small enough means that even after several consecutive wrong calls, you’ll still have enough capital in your account and won’t take a serious hit from one or two mistakes.
Related asset: $BTC , current price 81470 (24h -0.74%).
Don’t bet all your savings on a single call.