FREE INVESTOR TOOL · POSITION SIZING
Turn a trade idea into a defined loss budget before choosing leverage. This calculator combines entry, stop, target, funding and volatility assumptions in one decision sheet—without connecting an exchange account.
Position size is anchored to the loss at the stop—not to conviction.
The stop, target and account exposure are internally consistent. Recheck liquidity and slippage before execution.
METHODOLOGY
The output is a scenario, not a forecast. It makes the assumptions explicit so an investor can compare payoff asymmetry, carrying cost and volatility before placing a trade.
The risk budget is the maximum modeled loss if the stop fills at its stated price. Position size is derived from that budget and the distance between entry and stop.
Risk budget = capital × risk % · Units = risk budget ÷ |entry − stop|Perpetual funding is applied three times per day using a constant-rate assumption. Positive funding generally transfers value from longs to shorts; negative funding reverses that direction.
Funding P/L = notional × 8h rate × 3 × holding days × directionA one-week expected move scales annualized volatility by the square root of 52. It is a statistical reference range, not a confidence interval or price target.
1-week move = entry price × annualized volatility ÷ √52DECISION FRAMEWORK
No single threshold makes a trade safe. Read these outputs together, then verify liquidity, venue margin rules and the market-structure evidence behind the thesis.
| Output | Useful reading | Question to ask |
|---|---|---|
| Notional / capital | Approximates account-level exposure, not exchange liquidation leverage. | Would a normal adverse move force a decision before the thesis is invalidated? |
| Reward / risk | Compares modeled target profit with the loss at the stop. | Is the target supported by structure, or chosen only to manufacture a high ratio? |
| Funding P/L | Estimates carry if the current 8-hour rate persisted for the full holding period. | Could crowded positioning make both the rate and price path worse at once? |
| Expected range | Provides a volatility-scaled reference around entry. | Is the stop inside routine noise, and is the target plausible within the horizon? |
FAQ
There is no universal percentage. The appropriate budget depends on drawdown tolerance, strategy hit rate, portfolio correlation and liquidity. Many disciplined processes begin with a small fixed fraction, then reduce it when volatility or correlation rises.
No. Position size is the quantity of the asset. Notional divided by account capital is an exposure ratio, while exchange leverage and liquidation price also depend on posted margin, margin mode, fees and maintenance requirements.
The calculator treats cash received as positive and cash paid as negative. With a positive funding rate, longs generally pay shorts; with a negative rate, shorts generally pay longs. Actual exchange conventions and timestamps should be verified.
No. It scales annualized volatility to one week and centers the amount on entry. Returns can be non-normal, volatility changes over time and crypto trades continuously, so actual moves can exceed the range.
A reliable liquidation estimate requires venue-specific maintenance margin tiers, collateral type, cross or isolated margin, fees and other positions. A generic number could create false precision, so this tool focuses on stop-defined risk.
CONTINUE THE ANALYSIS