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Guide

How to calculate position size (crypto, forex, futures)

The formula for always risking the same percentage of capital, with practical examples for crypto, forex lots and futures contracts.

The formula

Size = (capital × risk %) ÷ (distance between entry and stop × point value). Risk is how much you lose if price hits the stop: decide that first, and the size follows from it.

Crypto example

Capital €10,000, risk 1% = €100. BTC entry at 64,000, stop at 63,500: distance 500. Size = 100 ÷ 500 = 0.2 BTC. If the stop is hit you lose €100, no more.

Forex and futures example

In forex a standard lot is 100,000 units: on EUR/USD one pip (0.0001) is worth about $10 per lot. With $100 of risk and a 20-pip stop, you open 0.5 lots.

In futures every contract has a point value: the E-mini S&P 500 is worth $50 per point. With $500 of risk and a 5-point stop you open 2 contracts.

Mistakes to avoid

Choosing the size based on how much you want to make, increasing it after a loss to win it back, forgetting fees and funding on longer positions.

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How to calculate position size (crypto, forex, futures) · TrackMyTrade