Understanding this won’t make me stronger overnight, but it can help me avoid a few rookie mistakes.
This lesson is about position sizing.
Position size and leverage, when calculated backward from the stop-loss distance, are not directly related. Leverage only affects how much margin is used, provided the liquidation price is beyond the stop-loss price.
Opening positions in the same direction across multiple coins with similar price movements adds up the risk, so you should also set a cap on your total position.
Looking at the market: $BTC reports 82764 (24h -1.15%).
#BTC
This lesson is about position sizing.
Position size and leverage, when calculated backward from the stop-loss distance, are not directly related. Leverage only affects how much margin is used, provided the liquidation price is beyond the stop-loss price.
Opening positions in the same direction across multiple coins with similar price movements adds up the risk, so you should also set a cap on your total position.
Looking at the market: $BTC reports 82764 (24h -1.15%).
#BTC