Guide · Last updated: October 13, 2026

How to calculate position size

Position size = (capital × risk per trade %) ÷ stop distance %. You first choose the most you are willing to lose on one trade, and the size follows; leverage determines the margin needed, not the size.

Step by step

1) Choose what percentage of capital to risk (common: 1–2%). 2) Convert it to money. 3) Find your stop distance as a percentage. 4) Divide the risk by the stop distance: that's the position size.

Where does leverage come in?

Once you have the size, required margin = size ÷ leverage. Raising leverage doesn't change your risk; with the same stop and size the loss is the same.

Things to watch

Fees and funding affect the result. A stop too close gets hit by normal swings; too far shrinks the position for the same risk. If several positions are stacked in one direction, total risk is larger than any single one.

Example

Capital 1,000 USDT, risk 1% = 10 USDT. Entry 100, stop 95 (distance 5%). Position size = 10 ÷ 0.05 = 200 USDT. With 5x leverage the margin needed is 40 USDT.

Where do you see it in KARDVANE?

The calculator in Tools computes this formula with your stop, risk and leverage; Trader Coach checks your plan's total risk.

FAQ

What risk percentage should I use?

That is personal; a common practice is not to exceed 1–2% of capital per trade, which makes recovering from a losing streak easier.

This page is educational; it is not investment advice.