Let’s talk about position management.
Position size calculated based on stop-loss distance is unrelated to leverage. Leverage only affects how much margin is used, but you need to make sure the liquidation price is beyond your stop-loss price.
One thing worth thinking through: set your stop-loss first, then work backward from your per-trade risk to determine your position size. This way, the potential loss on each trade stays within a range you’ve calculated in advance.
Holding positions in the same direction across multiple coins with similar price movements stacks the risk, so your total position size should also have a limit.
Here’s a live price: $BTC is currently at 80342.01, up 2.2% over 24 hours.
Position size calculated based on stop-loss distance is unrelated to leverage. Leverage only affects how much margin is used, but you need to make sure the liquidation price is beyond your stop-loss price.
One thing worth thinking through: set your stop-loss first, then work backward from your per-trade risk to determine your position size. This way, the potential loss on each trade stays within a range you’ve calculated in advance.
Holding positions in the same direction across multiple coins with similar price movements stacks the risk, so your total position size should also have a limit.
Here’s a live price: $BTC is currently at 80342.01, up 2.2% over 24 hours.