How large should a position be for a single contract?
For example: with an account balance of 10,000 USDT, a maximum loss of 1% (100 USDT) per trade, and a stop-loss distance of 2%, the position’s notional value would be about 5,000 USDT.
The position size calculated from the stop-loss distance has no direct relationship to leverage. Leverage only affects how much margin is required, but make sure the liquidation price is beyond your stop-loss price.
The most important thing to watch when managing positions: opening multiple positions in the same direction on contracts with similar price movements stacks the risk, so you should also set a limit on your total position size.
$BTC 77376.24（-0.46%）
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For example: with an account balance of 10,000 USDT, a maximum loss of 1% (100 USDT) per trade, and a stop-loss distance of 2%, the position’s notional value would be about 5,000 USDT.
The position size calculated from the stop-loss distance has no direct relationship to leverage. Leverage only affects how much margin is required, but make sure the liquidation price is beyond your stop-loss price.
The most important thing to watch when managing positions: opening multiple positions in the same direction on contracts with similar price movements stacks the risk, so you should also set a limit on your total position size.
$BTC 77376.24（-0.46%）
#BTC
