Trading Notes | Position Sizing
① Many trading resources recommend limiting the risk on a single trade to around 1%–2% of your total capital. The exact percentage depends on your personal risk tolerance.
② Position size calculated by working backward from the stop-loss distance has no direct relationship to leverage. Leverage only affects how much margin is used, provided the liquidation price is beyond the stop-loss.
③ If you open positions in several coins with similar price movements in the same direction, the risks add up, so you should also set a cap on your total position size.
$BTC 81749.52（-0.61%）
#BTC
These views are for discussion only. You are responsible for your own profits and losses.
① Many trading resources recommend limiting the risk on a single trade to around 1%–2% of your total capital. The exact percentage depends on your personal risk tolerance.
② Position size calculated by working backward from the stop-loss distance has no direct relationship to leverage. Leverage only affects how much margin is used, provided the liquidation price is beyond the stop-loss.
③ If you open positions in several coins with similar price movements in the same direction, the risks add up, so you should also set a cap on your total position size.
$BTC 81749.52（-0.61%）
#BTC
These views are for discussion only. You are responsible for your own profits and losses.