【Set your loss limit first, then calculate your position size】
Assume you have an account balance of 10,000 yuan and plan to risk no more than 100 yuan on a single trade. If your entry price is 5% away from your stop-loss price, your notional spot position would be approximately 100 ÷ 5% = 2,000 yuan.
This is only an educational example, not a recommended allocation. Fees, slippage, and price gaps can cause actual losses to exceed your budget; multiple positions in the same direction also add to your risk.
A stop-loss is part of your trading plan, not a guarantee that you won’t lose money. First decide how much you can afford to lose, then determine how much to buy. #RiskManagement
Assume you have an account balance of 10,000 yuan and plan to risk no more than 100 yuan on a single trade. If your entry price is 5% away from your stop-loss price, your notional spot position would be approximately 100 ÷ 5% = 2,000 yuan.
This is only an educational example, not a recommended allocation. Fees, slippage, and price gaps can cause actual losses to exceed your budget; multiple positions in the same direction also add to your risk.
A stop-loss is part of your trading plan, not a guarantee that you won’t lose money. First decide how much you can afford to lose, then determine how much to buy. #RiskManagement