Free Calculator • No Signup Required
Position Size Calculator
Calculate the optimal position size for your trades based on account size, risk percentage, and stop loss distance. Never risk more than you can afford to lose.
Enter account size, risk %, entry, and stop. The formula is (Account × Risk %) ÷ |Entry − Stop|. Example: $10k account, 2% risk, $1,000 stop distance → 0.2 BTC at $50k.
Risk Amount
$200
Stop Distance
2.31%
Position Size
0.133333
Position Value
$9K
- • Never risk more than 1-2% per trade
- • Always set a stop loss before entering
- • Scale position size based on conviction
- • Account for fees and slippage
Position sizing is the single most important factor in trading success, yet it's frequently overlooked by beginners who focus on entry signals instead. This calculator solves the critical problem of determining exactly how much to risk on each trade, ensuring that no single loss can devastate your account while maximizing your capital efficiency.
Without proper position sizing, even a winning strategy can blow up an account. A trader with 70% win rate can still go broke if position sizes are random or too large. Conversely, a trader with only 40% win rate can be consistently profitable with proper position sizing and risk-reward management. The math is clear: survival comes first, profits come second.
This calculator implements the percentage risk method used by professional traders worldwide. By risking a fixed percentage of your account on each trade (typically 1-2%), you ensure consistent risk exposure regardless of your stop loss distance. Learn more advanced strategies in our comprehensive crypto risk management guide.
Capital Protection
Never risk too much
Consistent Risk
Same % every trade
Optimal Sizing
Maximize efficiency
The position size calculator uses a simple but powerful formula that ensures you risk exactly your specified percentage on every trade, regardless of the asset's price or your stop loss distance.
The Position Sizing Formula
This formula calculates how many units (coins, contracts, shares) you can buy while risking exactly your predetermined amount. The key insight is that tighter stops allow larger positions while wider stops require smaller positions, but risk remains constant.
Calculating Dollar Risk
First, calculate how much you're willing to lose. With a $10,000 account and 2% risk, your maximum loss per trade is $200. This dollar amount stays constant. Your position size adjusts to hit this target.
Risk Per Unit (Stop Distance)
For long positions, subtract your stop loss from entry price. For shorts, subtract entry from stop loss. This tells you how much you lose per unit if stopped out.
See how the same 2% risk creates different position sizes based on stop loss distance:
Example 1: Tight Stop Loss
Account Size: $10,000
Risk %: 2% ($200)
Entry Price: $50,000 BTC
Stop Loss: $49,000 (2% below)
Calculation:
$200 ÷ $1,000 = 0.2 BTC
Position: 0.2 BTC ($10,000)
Effective leverage: 1x
Example 2: Wide Stop Loss
Account Size: $10,000
Risk %: 2% ($200)
Entry Price: $50,000 BTC
Stop Loss: $45,000 (10% below)
Calculation:
$200 ÷ $5,000 = 0.04 BTC
Position: 0.04 BTC ($2,000)
Smaller position, same risk
Example 3: Altcoin Trade
Account Size: $10,000
Risk %: 1% ($100)
Entry Price: $100 SOL
Stop Loss: $90 (10% below)
Calculation:
$100 ÷ $10 = 10 SOL
Position: 10 SOL ($1,000)
Lower risk % for volatile asset
Key Insight: Notice how the same 2% risk ($200) results in vastly different position sizes depending on stop distance. Tighter stops = larger positions. The dollar at risk stays constant.
Professional traders swear by the 1-2% rule because the math proves it works. Here's why this simple rule separates profitable traders from those who blow up:
Survival Mathematics
At 1% risk per trade, you'd need 100 consecutive losses to blow up your account. At 2% risk, you'd need 50 consecutive losses. Both scenarios are virtually impossible with any reasonable strategy. Compare this to 10% risk per trade where just 10 losses cuts your account by 65%.
Drawdown Comparison
1% Risk
10 losses = 9.6% DD
2% Risk
10 losses = 18.3% DD
5% Risk
10 losses = 40.1% DD
When to Adjust Risk
- Use 0.5-1% when: learning, on a losing streak, trading volatile assets, or using high leverage
- Use 1-2% when: confident in strategy, good win rate, and trading liquid markets
- Never exceed 2% unless you have extensive track record and specific edge
Set Stops at Invalidation Points
Don't use arbitrary percentages. Place stops where your trade thesis is invalidated: below support, below key MAs, etc. Then calculate position size to match your risk %.
Account for Correlated Positions
If you have multiple positions in correlated assets (altcoins that move with BTC), consider them as combined risk. 2% in ETH + 2% in SOL may effectively be 4% risk.
Reduce Size in Drawdowns
When in a drawdown, consider reducing risk to 0.5-1% until you recover. This prevents emotional trading from compounding losses.
Be Consistent
Use the same risk percentage for all trades. Don't increase size because you're "sure" about a trade. Consistency is what makes position sizing work.
Crypto risk management hub
Pillar guide for sizing, stops, and survival
Related Articles
Position sizing strategies for crypto
Risk % and stop distance — the workflow this calculator encodes
Crypto risk management strategies
Capital preservation rules around every sized trade
Trading expectancy explained
Why size only matters after payoff math
Stop-loss strategies
Define the stop before you size the position
DeFi position sizing guide
Sizing when positions are correlated on-chain
Sign Up
Journal, signals, and performance analytics on Pro
Add this free calculator to your site. It links back to Thrive.
<iframe src="https://thrive.fi/embed/tools/position-size-calculator" title="Thrive position-size-calculator calculator" width="100%" height="520" style="border:0;border-radius:12px" loading="lazy"></iframe>
Size is step one. Find the process leak next
Keep sizing every trade here, then get Pro to journal size and outcomes together.