Trading Notes | Position Sizing
① For example: With an account balance of 10,000 USDT, a willingness to risk only 1% per trade (100 USDT), and a stop-loss distance of 2%, the position’s notional value would be approximately 5,000 USDT.
② The risk per trade is the amount lost if the trade hits its stop-loss. It is roughly equal to the position’s notional value × the percentage distance between the entry price and the stop-loss price.
③ Before opening a position, write down three figures: the stop-loss price, the maximum amount you’re willing to lose on this trade, and the position size calculated from those figures.
$BTC 82978 (-0.11%)
① For example: With an account balance of 10,000 USDT, a willingness to risk only 1% per trade (100 USDT), and a stop-loss distance of 2%, the position’s notional value would be approximately 5,000 USDT.
② The risk per trade is the amount lost if the trade hits its stop-loss. It is roughly equal to the position’s notional value × the percentage distance between the entry price and the stop-loss price.
③ Before opening a position, write down three figures: the stop-loss price, the maximum amount you’re willing to lose on this trade, and the position size calculated from those figures.
$BTC 82978 (-0.11%)