Crypto Position Size Calculator
Position sizing is the single most important skill in crypto trading. Get it wrong and one bad trade can wipe your account. Get it right and you can survive hundreds of losing trades.
What is position sizing?
Position sizing is the process of determining how many units of an asset to buy or sell on a given trade. Most beginners skip this step entirely — they deposit $1,000 and just buy "a bit" of Bitcoin. This is one of the fastest ways to blow up an account.
Professional traders do the opposite: they start with risk — how much am I willing to lose if this trade goes wrong? — and work backwards to find the correct position size.
Formula
Position Size = (Balance × Risk%) ÷ (Entry − Stop Loss)
Quantity = Position Size ÷ Entry Price
Risk% is typically 1–2% of your total account balance per trade.
Step-by-step example
Example — BTC Long Trade
Account balance$10,000
Risk per trade1% = $100
Entry price$65,000
Stop loss price$63,700
SL distance$1,300 (2%)
Position size$5,000
Quantity (BTC)0.0769 BTC
Max loss if SL hits−$100
Even though the position size is $5,000 — half of the entire account — the actual risk is only $100. This is because the stop loss is only 2% away from the entry.
The 1–2% rule explained
If you risk 2% per trade, you need to lose 50 trades in a row to lose your entire account. No edge-based strategy loses 50 times in a row. This rule keeps you in the game long enough for your edge to play out.
Pro tip: Most professional crypto traders use 0.5–1% risk per trade. This feels painfully small at first, but it allows you to trade for years without blowing up.
Warning: Risking more than 3% per trade is considered aggressive. At 5% risk, just 20 consecutive losing trades wipe your account.
Common mistakes
- Using fixed lot sizes — buying "0.1 BTC every time" ignores that your stop loss distance changes with every trade.
- Ignoring the stop loss — position size without a defined stop loss is just gambling.
- Risking more after losses — the urge to "make it back quickly" leads to account blow-ups.
- Not accounting for fees — 0.1% each way on Bybit adds up. Factor this into your break-even.
- Overleveraging — using 10x leverage with a 2% stop loss means your real risk is 20%.
Frequently asked questions
What is a good position size for crypto? +
For most retail traders, risking 1–2% per trade is considered sustainable. If you are new, start with 0.5–1%. The goal is to stay in the game long enough to develop your edge.
How do I calculate position size without a stop loss? +
You cannot calculate position size without a stop loss in a risk-controlled way. Without knowing where you are wrong, you cannot know how much to risk. A simple alternative: never put more than 5–10% of your portfolio into a single asset.
Does position size change with leverage? +
The formula gives you the nominal position size. With 5x leverage, you only need to post 20% as margin. However, your real risk stays the same regardless of leverage.
Should I use the same position size for all trades? +
Most traders use a fixed risk percentage (e.g. always 1%), but the actual position size varies with every trade depending on the stop loss distance. Our calculator handles this automatically.