How large should a position be for a single contract trade?
For example: with total funds 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 would be about 5,000 USDT.
Risk per trade is the amount you would lose if a 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.
The key thing to remember when managing your funds: if you have several open positions in coins with similar price movements and in the same direction, their risks stack up. You should also set a cap on your total position size.
$BTC 80594.62（-2.58%）
For example: with total funds 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 would be about 5,000 USDT.
Risk per trade is the amount you would lose if a 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.
The key thing to remember when managing your funds: if you have several open positions in coins with similar price movements and in the same direction, their risks stack up. You should also set a cap on your total position size.
$BTC 80594.62（-2.58%）