Crypto 101 📚 Position Sizing
Risk per trade is the amount you lose if a trade hits its stop loss. It is approximately equal to the position’s notional value × the percentage distance between the entry price and the stop loss.
A common position-sizing formula: Position notional value ≈ total capital × risk per trade ratio ÷ stop-loss distance.
Practical knowledge like this may seem useless in everyday life, but you realize its value when things go wrong.
Back to the market: $BTC is currently at 83387.84 (24h +0.5%).
Risk per trade is the amount you lose if a trade hits its stop loss. It is approximately equal to the position’s notional value × the percentage distance between the entry price and the stop loss.
A common position-sizing formula: Position notional value ≈ total capital × risk per trade ratio ÷ stop-loss distance.
Practical knowledge like this may seem useless in everyday life, but you realize its value when things go wrong.
Back to the market: $BTC is currently at 83387.84 (24h +0.5%).