Study Notes | Position Sizing
① For example: With total capital of 10,000 USDT, a maximum loss of 1% per trade (100 USDT), and a stop-loss distance of 2%, the position’s notional value is approximately 5,000 USDT.
② The risk per trade is the amount you would lose if the trade hits its stop-loss, approximately equal to the position’s notional value multiplied by the percentage difference between the entry price and the stop-loss price.
③ Before entering a trade, write down three figures: the stop-loss price, the maximum amount you can lose on this trade, and the resulting position size.
$BTC 72029.91（-2.83%）
① For example: With total capital of 10,000 USDT, a maximum loss of 1% per trade (100 USDT), and a stop-loss distance of 2%, the position’s notional value is approximately 5,000 USDT.
② The risk per trade is the amount you would lose if the trade hits its stop-loss, approximately equal to the position’s notional value multiplied by the percentage difference between the entry price and the stop-loss price.
③ Before entering a trade, write down three figures: the stop-loss price, the maximum amount you can lose on this trade, and the resulting position size.
$BTC 72029.91（-2.83%）