The fixed-fractional formula
Risk per trade in dollars is your account times the percentage you chose. Divide that by the distance between entry and stop, and you have the number of coins you can hold so that hitting the stop costs exactly that amount. Everything else follows from that number: position value, margin, leverage. The position sizing guide covers why this rule survives losing streaks that wreck every other approach.
Leverage and the liquidation estimate
Leverage doesn't change how many coins the risk rule allows. It changes how much of your account has to be posted as margin. If the position value is larger than your account, you need leverage to open it at all, and the calculator shows the minimum. The liquidation estimate is the standard isolated-margin approximation. If your stop sits beyond that price, the exchange closes the trade before your stop can, and your real risk is the liquidation, not the stop. The calculator warns when that happens. The liquidations guide shows what those clustered levels do to price.
R-multiples and risk to reward
One R is the dollar amount you risk. A target at 2R pays twice what the stop costs. Expressing targets in R rather than dollars or percentages makes trades comparable regardless of size, which is the point of sizing by risk in the first place. Enter a take-profit price and the calculator shows the ratio. For stops set by volatility rather than by chart level, the ATR guide explains the standard method.
Frequently Asked Questions
The guides behind this calculator
- Position sizing The discipline behind the formula.
- Liquidations as a signal Why clustered liquidation levels move price.
- ATR Setting stops by volatility instead of by guess.
- Funding rates The carrying cost of the leverage you choose.
More calculators
Formulas last reviewed 2026-09-10. Educational tool, not financial advice. Results depend entirely on the numbers you enter.