How to Calculate Position Size in Crypto Futures (Risk-Based)

Most blown accounts do not come from bad calls — they come from oversized positions. The fix is a rule every professional uses: size each trade from how much you are willing to lose, not from how confident you feel. (General information, not financial advice.)

The risk-based formula

Two inputs decide your size: your risk per trade (a fixed % of your account — most pros use 1–2%) and your stop-loss distance (how far your stop sits from entry). Then:

Position size = Risk amount ÷ Stop distance

In units, quantity = (account × risk%) ÷ |entry − stop|. The result is the size that loses exactly your chosen risk if the stop is hit — no more, whatever leverage you set.

A worked example

Say you have a $5,000 account and risk 1% ($50) per trade. You long BTC at $60,000 with a stop at $58,800 — a $1,200 (2%) stop distance. Your size is $50 ÷ 0.02 = $2,500 notional (about 0.0417 BTC). If BTC hits your stop, you lose $50 — exactly 1%. Leverage only sets the margin; it does not change that loss.

Why this beats trading by feel

Sizing by gut makes your losses random — one bad trade can erase ten good ones. Sizing by risk makes every loss the same small, survivable number, so a losing streak cannot end your account. Pair it with a sensible stop and a liquidation buffer, then practice on the Paper Trade terminal.