Position risk calculator
Position size should come from the loss you can accept, not from the leverage a venue offers. Set account equity, entry, stop and risk percentage; the calculator divides that risk budget by the price distance to produce a maximum size, then shows how much margin the chosen leverage requires.
Maximum quantity = account equity × risk percentage ÷ absolute(entry price − stop price). Leverage changes required margin, not the loss budget.
Maximum quantity
Risk-sized position
- Position notional
- 2,000.00 USDT
- Loss at stop
- 100.00 USDT
- Required margin
- 200.00 USDT
- Stop distance
- 3,000.00 (5.00%)
- Margin / equity
- 2.00%
The estimated margin fits within the supplied account equity.
Assumes the stop fills exactly at the entered price. Fees, slippage, price gaps, funding, contract multipliers and maintenance-margin liquidation are excluded; actual loss can be larger.
Frequently asked
These answers show how the loss budget and stop distance determine the position cap, and when a mathematically valid result may still be impractical.
Why does leverage not increase the position size?
The stop distance and loss budget determine safe quantity. Leverage only changes the collateral needed to hold that same quantity; using it to multiply the risk budget defeats the purpose of risk-based sizing.
Why must a long stop be below entry?
This calculator sizes a loss-limiting stop. A long loses when price falls and a short loses when price rises, so a stop on the profitable side is not a valid risk boundary for this calculation.
Can the actual loss exceed the displayed amount?
Yes. A stop is an order, not a guaranteed fill price. Fast markets, gaps, slippage and fees can all push realised loss beyond the planned budget.
How does changing the risk percentage affect position size?
With entry and stop unchanged, quantity is proportional to the risk percentage: reducing risk from 1% to 0.5% halves both the loss budget and calculated position. That is a mathematical relationship, not a universal recommendation. Consecutive losses, correlated positions and extra slippage still need room in an account-level drawdown plan.
What does it mean when required margin exceeds account equity?
The position fits the stop-loss budget but cannot be opened with the available equity at the selected leverage. Reducing the risk budget or quantity is the more conservative adjustment. Higher leverage can lower the displayed collateral requirement, but it does not reduce the planned stop loss and can move liquidation closer to entry.