📐 Today’s lesson: Position sizing
Position size calculated backward from the stop-loss distance has nothing to do with leverage. Leverage only determines how much margin is required, assuming the liquidation price is beyond the stop-loss price.
Before opening a position, decide on three figures: the stop-loss price, how much you can afford to lose on a single trade, and the position size calculated from those figures.
Leave enough room for fluctuations in futures trading—don’t let one sudden move wipe out your position.
Related coin: $BTC quoted at 80864.01, 24h +0.0023%.
#BTC
How you trade is up to you; I’m just keeping a record.
Position size calculated backward from the stop-loss distance has nothing to do with leverage. Leverage only determines how much margin is required, assuming the liquidation price is beyond the stop-loss price.
Before opening a position, decide on three figures: the stop-loss price, how much you can afford to lose on a single trade, and the position size calculated from those figures.
Leave enough room for fluctuations in futures trading—don’t let one sudden move wipe out your position.
Related coin: $BTC quoted at 80864.01, 24h +0.0023%.
#BTC
How you trade is up to you; I’m just keeping a record.