At the same stop-loss level, why does one person lose only 1% while another loses 30%?
Position size calculated based on the stop-loss distance is unrelated to leverage. Leverage only determines how much margin is used, but you need to make sure the liquidation price is beyond your stop-loss.
If you open multiple positions in the same direction on contracts with similar price movements, their risks add up, so your total position size should also have a limit.
For reference, the market is at: $BTC , current price 64795.13, 24h -3.4%.
If you understand, leave a comment. If not, ask away in the comments.
Position size calculated based on the stop-loss distance is unrelated to leverage. Leverage only determines how much margin is used, but you need to make sure the liquidation price is beyond your stop-loss.
If you open multiple positions in the same direction on contracts with similar price movements, their risks add up, so your total position size should also have a limit.
For reference, the market is at: $BTC , current price 64795.13, 24h -3.4%.
If you understand, leave a comment. If not, ask away in the comments.