Crypto Position Size Calculator
A free educational tool to calculate how much to invest per trade. Position sizing is the single most important risk management skill in crypto — risking too much per trade is the #1 reason beginners blow up their accounts.
How Position Sizing Works
Position sizing determines how much capital to allocate to a single trade so that if your stop-loss is hit, you lose only the percentage of your account you are willing to risk — no more.
Risk Amount = Account Balance × (Risk % ÷ 100)
Risk per Unit = |Entry Price − Stop-Loss Price|
Position Size = Risk Amount ÷ Risk per Unit
Example:
$5,000 account × 1% risk = $50 risk amount
Entry at $45,000, stop at $44,000 = $1,000 risk per BTC
$50 ÷ $1,000 = 0.05 BTC position size
The position size tells you how many units (coins, contracts) to buy so that a move from your entry to your stop-loss equals exactly your risk amount. This is the foundation of professional risk management — every trade risks the same percentage regardless of the asset or setup.
Why 1-2% Risk per Trade?
The 1-2% rule is not arbitrary. If you risk 5% per trade and lose 10 trades in a row (a normal statistical drawdown for any strategy), you are down 40% — and need a 67% gain just to break even. At 1% risk, 10 losses cost you 10% — recoverable with an 11% gain. The math of compounding losses is brutal, and position sizing is your only defense against it.