What’s an appropriate position size for a single contract trade? Don’t worry, your study buddy is here:
A common way to calculate position size: position notional value ≈ total capital × risk per trade ÷ stop-loss distance.
Set your stop-loss first, then work backward to calculate your position size based on the risk per trade. That way, the cost of being wrong on any trade stays within a range you’ve decided on in advance.
Don’t laugh—I only learned this after making a few costly mistakes myself.
$BTC 80892.85（-2.94%）
A common way to calculate position size: position notional value ≈ total capital × risk per trade ÷ stop-loss distance.
Set your stop-loss first, then work backward to calculate your position size based on the risk per trade. That way, the cost of being wrong on any trade stays within a range you’ve decided on in advance.
Don’t laugh—I only learned this after making a few costly mistakes myself.
$BTC 80892.85（-2.94%）