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RISK · POSITION SIZE

Crypto Position Size From Stop Distance: A Worked Risk Example

Position size is not a feeling. It is the amount you can lose at your stop, divided by the distance to that stop.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

Position size = (account × risk per trade) ÷ (entry − stop). Worked example: a $25,000 account risking 0.8% ($200) on an ETH long at $3,000 with a stop at $2,910 ($90 away) gives 2.22 ETH, about $6,667 notional. Leverage only changes how much margin that position uses, not how much you lose at the stop. Recalculate whenever the stop moves, and add fees and slippage to the distance for a more accurate size.

Step by step

StepValue
Account$25,000
Risk per trade0.8% = $200
Entry$3,000
Stop$2,910
Distance$90
Size200 ÷ 90 = 2.22 ETH
Notional≈ $6,667
Sizing from the stopSizing from the stop. Steps: 1. Find stop — From structure; 2. Distance — Entry − stop; 3. Risk $ — Account × %; 4. Size — Risk ÷ distance; 5. Margin — Notional ÷ leverage1Find stopFrom structure2DistanceEntry − stop3Risk $Account × %4SizeRisk ÷ distance5MarginNotional ÷ leverage
The stop decides size; leverage decides margin. Original ChartsPod editorial graphic.

Same risk, different stops

ETH position for $200 risk by stop distanceETH position for $200 risk by stop distance: $45 stop 4.44 ETH; $90 stop 2.22 ETH; $180 stop 1.11 ETH.ETH POSITION FOR $200 RISK BY STOP DISTANCE$45 stop4.44 ETH$90 stop2.22 ETH$180 stop1.11 ETH
Wider stop, smaller size, same loss. Original ChartsPod editorial graphic.

This is why a trader can use wide stops on volatile coins without taking more risk: the size shrinks to compensate.

Mistakes

Choosing size first and fitting the stop to it; ignoring fees (about $13 round trip at 0.1% per side on $6,667, see Stop-Distance Position Sizing: A Worked Crypto Example With Fees Included); forgetting that correlated positions add up (see Correlated Altcoin Positions: Why Five Trades Can Be One Bet).

Sizing checklistSizing checklist: Stop from structure, not from size; Risk % fixed in advance; Fees and slippage added; Liquidation beyond stop; Correlated exposure checked.SIZING CHECKLISTStop from structure, not from sizeRisk % fixed in advanceFees and slippage addedLiquidation beyond stopCorrelated exposure checked
Run before every entry. Original ChartsPod editorial graphic.

Variation: short positions

For shorts, the formula is the same with distance = stop − entry. A short at $3,000 with a stop at $3,075 ($75 away) and $200 risk is 2.67 ETH. Remember that losses on shorts can grow quickly in squeezes, so slippage allowances on short stops are often larger than on long stops.

Conclusion

Related: ChartsPod Risk Planner: Position Size From Entry, Stop and Account Risk, Leverage vs Risk per Trade: Why a Small Margin Can Still Lose More.

Use the position planner with entry, stop and account risk.

Open the ChartsPod terminal

Size every trade from stop distance and fixed account risk; let leverage only determine margin.

Compare Crypto Position Size From Stop Distance across Binance, Bybit, OKX and Hyperliquid markets.

Open markets in ChartsPod

Questions readers ask

How do I calculate crypto position size?

Account risk in dollars divided by entry-to-stop distance.

Does leverage change position size?

No; it changes margin required.

What risk per trade is typical?

Many traders use 0.25%–1%; choose and keep it consistent.

Sources and methodology

Risk arithmetic follows standard position-sizing formulas; liquidation mechanics reference Bybit's and Binance's documentation; ChartsPod's position planner and journal were checked on its public pages on 17 October 2026. All examples are illustrative.

  1. ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.
  2. Bybit: Liquidation process — mark price and margin modes.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.