Risk Management | A stop-loss price does not guarantee a maximum loss
Suppose you have 10,000 yuan in a spot account and plan to risk 100 yuan on a single trade. If the distance from entry to stop-loss is 5%, the corresponding position size is about 2,000 yuan, not the full 10,000 yuan, ignoring costs. Fees, slippage, and price gaps can cause actual losses to differ from your plan, so leave a buffer. A stop-market order prioritizes execution, but the price is not guaranteed; a stop-limit order sets a price limit, but may not be filled. Set your risk budget first, then calculate your position size. This example is for educational purposes only and is not a position-size recommendation. #RiskManagement
Suppose you have 10,000 yuan in a spot account and plan to risk 100 yuan on a single trade. If the distance from entry to stop-loss is 5%, the corresponding position size is about 2,000 yuan, not the full 10,000 yuan, ignoring costs. Fees, slippage, and price gaps can cause actual losses to differ from your plan, so leave a buffer. A stop-market order prioritizes execution, but the price is not guaranteed; a stop-limit order sets a price limit, but may not be filled. Set your risk budget first, then calculate your position size. This example is for educational purposes only and is not a position-size recommendation. #RiskManagement