EDGE & ORDER · Practical calculator guide

How to calculate crypto position size

Before entering a trade, you need to know what the planned move against you would cost. Position sizing connects three things: your account balance, your chosen risk budget and the distance between your entry and stop.

This guide walks through the calculation for a simple spot purchase. The numbers are illustrative, not suggested trading settings.

Position value and planned risk are different

Position size is the number of coins you buy or sell. Position value is that quantity multiplied by the entry price. Planned risk is the estimated loss if you exit at your chosen stop price, including any costs you have allowed for.

A position worth 200 USDT does not necessarily have 200 USDT of planned stop risk. Equally, a planned 10 USDT loss is not a guarantee that the actual loss will be limited to 10 USDT.

1. Calculate the risk budget

Multiply your account balance by your chosen risk percentage, divided by 100. Choosing that percentage is a separate decision; the calculator does not decide what you can afford to lose.

2. Measure the entry-to-stop distance

Suppose a fictional coin has a planned entry of 100 USDT and a stop of 95 USDT. The distance is 5 USDT per coin. For this long position, the stop is below the entry.

Use the same currency throughout. Mixing a balance in pounds with prices in USDT would produce the wrong result unless you first convert the amounts consistently.

3. Divide the budget by the distance

With the same 10 USDT budget, a 10 USDT stop distance would give 1 coin. A wider stop therefore means a smaller quantity when the risk budget stays unchanged. This calculation does not tell you where a stop should be placed. CME Group explains the same relationship between account risk and stop distance in its position-sizing lesson.

4. Allow for fees and order limits

Fees use part of the budget too. In this example, an entry fee of 0.1% and exit fee of 0.1% add 0.10 + 0.095 = 0.195 USDT per coin. Estimated loss per coin becomes 5.195 USDT.

10 ÷ 5.195 gives approximately 1.925 coins. If the exchange quantity step is 0.01 coin, round down to 1.92 coins. The estimated loss including those fees is 9.9744 USDT. Check minimum order sizes and available funds as well.

A stop is not a guaranteed loss limit

The example assumes execution at the entered prices. A stop-market order can fill at a different price; a stop-limit order can remain unfilled. Check your exchange’s exact order rules. Coinbase’s order-type explanation illustrates why the trigger and execution conditions matter.

For linear futures, leverage changes the estimated initial margin, not the quantity produced by this risk-budget calculation. Liquidation, funding and other exchange rules need separate checks. This example does not cover inverse contracts or options.

Try the example in EDGE Size

Enter 1,000 for the balance, 1 for risk percentage, 100 for entry and 95 for stop. Start with zero fees, then add the illustrative fees above and compare the quantity. Check that the change makes sense before using your own inputs.

Open the free position size calculator →

The takeaway: work from the planned loss per coin to the quantity. Keep position value, risk budget and required funds separate.

Written by EDGE & ORDER · Updated 8 November 2026.
Educational calculation example, not a trade signal or personal investment recommendation.