How to use it
Pick a risk per trade you could take many times in a row; many traders use 0.5–2% of the account. Set the stop where your trade idea is wrong, not where the loss feels comfortable, and let the calculator size the position. For bots, the same logic applies to the whole range: a grid or DCA bot should be sized so that a break below its range costs no more than you planned.
FAQ
How do you calculate position size?
Decide how much of your account you accept to lose if the stop is hit, then divide that amount by the loss per unit between entry and stop. Example: 1% of 10,000 is 100; with entry 100 and stop 95 the loss per unit is 5, so the position is 20 units (2,000 notional).
Does leverage change my position size?
No. Leverage only changes the margin you post. The position size comes from your risk and stop distance; higher leverage just moves the liquidation price closer to entry.
Why does the liquidation warning matter?
If the liquidation price is reached before your stop, the exchange closes the position first and you can lose the whole margin. Lower the leverage until the liquidation price is well beyond the stop.
Is the liquidation price exact?
No. We use entry × (1 − 1/leverage) for longs and entry × (1 + 1/leverage) for shorts. Real liquidation is earlier because exchanges add maintenance margin and fees; check your exchange’s own calculator.