Contract Trading | How large should a position be for a single trade?
Position size calculated based on your stop-loss is unrelated to leverage. Leverage only determines how much margin you use, but make sure the liquidation price is beyond your stop-loss.
Set your stop-loss first, then 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 set in advance.
Market update: $BTC Current price: 80,881.25, 24h +0.21%.
There’s no shame in taking it slow. Staying in the game matters far more than how much you make in a single trade.
Position size calculated based on your stop-loss is unrelated to leverage. Leverage only determines how much margin you use, but make sure the liquidation price is beyond your stop-loss.
Set your stop-loss first, then 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 set in advance.
Market update: $BTC Current price: 80,881.25, 24h +0.21%.
There’s no shame in taking it slow. Staying in the game matters far more than how much you make in a single trade.