Portfolio Heat: A Worked Crypto Example With Fees Included
Portfolio heat is the total you would lose if every open position hit its stop now. Including exit fees, it's a single number to cap.
Short answer
Portfolio heat = sum of (distance to stop × size) across open positions, plus exit costs. With a $40,000 account and four positions risking $400, $350, $300 and $250, heat is $1,300 (3.25%); adding ≈ $14.50 of exit fees (0.05% on $29,000 notional) gives ≈ $1,315 (≈ 3.29%). A heat cap (e.g. 4%) stops new trades until risk is reduced. Moving a stop to break-even reduces heat; adding to a winner increases it.
Worked example
| Step | Value |
|---|---|
| Account | $40,000 |
| Position risks | $400 + $350 + $300 + $250 |
| Heat before fees | $1,300 (3.25%) |
| Exit fees | ≈ $14.50 |
| Heat with fees | ≈ $1,315 (3.29%) |
| Cap | 4% = $1,600 |
| Room left | ≈ $285 |
Heat changes
| Action | Effect on heat |
|---|---|
| Stop to break-even (fee-adjusted) | Removes that position's risk |
| Add to a winner | Increases |
| New trade | Increases |
| Correlated positions | Consider group risk |
Conclusion
Related: Correlated Altcoin Exposure: A Worked Crypto Example With Fees Included, Event-Risk Position Reductions: A Worked Crypto Example With Fees Included.
Plan the same calculation with ChartsPod's position planner.
Open the ChartsPod terminalPortfolio heat = sum of (distance to stop × size) across open positions, plus exit costs.
Test Portfolio Heat on a perpetual chart; no account is needed to chart.
Launch ChartsPodQuestions readers ask
What is portfolio heat?
Total loss if all stops hit now.
What cap should I use?
Many traders use a few percent; choose and keep it.
Do fees count?
Include exit fees.
Sources and methodology
Arithmetic uses standard sizing formulas. Fee rates (0.05% taker, 0.02% maker), slippage and funding values are illustrative; check your venue's schedule. Liquidation figures are simplified approximations; exchanges calculate them with their own maintenance-margin rules (see Bybit's documentation).
- Bybit: Liquidation process — mark price and margin modes.
- ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.
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.