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Position size

How many units of an asset a trade holds — derived from risk budget and stop distance.

Position size is the number of contracts, shares, or coins held in a trade. The professional way to set it is to back into it from a fixed risk budget: pick the % of equity to risk on this trade, pick a stop distance, and let the position size fall out as risk-budget ÷ stop-distance.

Fixed-fraction sizing (always risk 1% of equity) gives a position size that scales with the account, so winning streaks compound and losing streaks shrink risk automatically. Fixed-lot sizing (always trade 1 BTC) does not.

Position size is not the same as leverage. You can be 1x leveraged and still oversize a position by setting the stop too far from entry. The right framing is always 'how many dollars do I lose if my stop hits?'

Formula

size = (equity · risk_pct) / |entry_price − stop_price|

Esempio

Equity = 10,000 USDT, risk_pct = 1%, entry = 50,000, stop = 49,500. Size = (10,000 · 0.01) / 500 = 0.2 BTC.

Come Noon Barbari usa Position size

Ogni concetto qui è implementato nella piattaforma. Apri la documentazione o lo strumento corrispondente per vederlo all'opera.

Position size calculator

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