This position size calculator helps you determine the exact amount to invest in each trade based on your risk management rules. Enter your total capital, risk percentage (typically 1-2% per trade), entry price, and stop loss price to calculate your optimal position size in both dollar amount and number of coins.

The calculator automatically validates that your stop loss is positioned correctly based on whether you're going long or short. It also shows you the distance to your stop loss as a percentage, helping you assess if your risk-reward ratio makes sense for the trade setup.

Position sizing is one of the most important aspects of risk management in trading. Even with a winning strategy, poor position sizing can lead to catastrophic losses. By limiting your risk to 1-2% of your capital per trade, you ensure that even a string of losses won't significantly damage your account.

Professional traders never risk more than they can afford to lose on a single trade. This calculator takes the emotion out of position sizing decisions by providing a mathematical approach based on your predetermined risk parameters. It helps you stay disciplined and avoid overleveraging your account.

The 1-2% rule is the industry standard for position sizing. This means if you have a $10,000 account and risk 1% per trade, your maximum loss on any single trade should be $100. The position size calculator helps you achieve this by factoring in the distance to your stop loss.

Always set your stop loss before entering a trade, and use it to calculate your position size. Never adjust your stop loss to increase position size. The market doesn't care about your account size - proper position sizing ensures you survive the inevitable losing streaks that all traders experience.