Before you order, get one number straight: if this trade's stop gets hit, what's the most you lose? Fill in four figures and you'll know how big a position to open — instead of going heavy on a hunch.
The result is a math conversion — it doesn't mean this trade is bound to be profitable or safe. Gaps, slippage and liquidation mechanics can all push the real loss past your plan. However small the position, the risk is never zero.
| Risk per trade | Left after 5 losses in a row | Left after 10 losses | Who it suits |
|---|---|---|---|
| 1% | ~95% | ~90% | Beginners / steady |
| 2% | ~90% | ~82% | Experienced, disciplined |
| 5% | ~77% | ~60% | Aggressive, drawdowns hurt |
| 10% | ~59% | ~35% | Close to gambling, not advised |
The figures are a rough estimate of consecutive per-trade losses. They make one point — the bigger you set the risk, the faster a bad run can punch through your account — not a forecast of returns.
Sizing your position already puts you ahead of most beginners. To trade the plan, you need a Binance account you can fund and withdraw from. Register with code BN771 for up to 20% off trading fees*.
Sign up on Binance with BN771 →A lot of people only think "I like it, how much do I buy?" before ordering, and never ask "if I'm wrong, how much do I accept losing?" Position sizing flips the order: first decide what percent of the account you're willing to lose on one trade, then work backward to how many units that lets you buy. Get a few in a row wrong and the account still isn't badly hurt.
The math is simple. The money you're willing to lose = account equity × risk per trade %; risk per unit = the gap between entry and stop; divide the first by the second and you get the quantity you can buy. Say a 2,000 U account, 1% risk per trade (20 U), entry 60,000, stop 57,000 — the risk per coin is 3,000 U, so you can actually only buy 20 ÷ 3,000 ≈ 0.0067 BTC. It sounds tiny, but that's exactly the point of controlling risk: if the stop gets hit, you're only out that 20 U.
Three traps beginners hit: one, no stop at all — then the whole calculation collapses and "how much do I lose" becomes bottomless; two, setting the risk too high — 5% or 10% a trade, and a few unlucky ones halve the account; three, putting the stop too close to entry — a bit of normal noise sweeps you out, and the back-and-forth stop-outs grind down your capital anyway. Most traders who last the distance keep per-trade risk in the 1%–2% range.
One more thing: this tool works out the notional position on a spot basis. If you use leverage on futures, the same stop distance amplifies the loss, and the liquidation price can trigger before your stop does. The higher the leverage, the easier it is to get taken out by a single wick — early on, it's best to leave leverage aside. To understand how liquidation is calculated, read the Liquidation Calculator.