How to calculate position size in crypto
Start from what you are willing to lose, not from your leverage. The distance between your entry and your stop decides how many coins you can hold:
Position value = Coins × Entry
Margin = Position value ÷ Leverage
Example: a $1,000 account risking 1% ($10) on a BTCUSDT long at 84,200 with a stop at 83,600 and 0.05% fees per side. The stop is $600 away and fees add about $84 per BTC, so the size is 10 ÷ 684 ≈ 0.0146 BTC — a $1,231 position. At 10x that needs $123 of margin; at 5x, $246. The loss at the stop is $10 either way.
How much fees matter depends on your timeframe: with a normal stop they take about 0.43R a trade on 15-minute charts and 0.10R on 4-hour charts. See trading fees by timeframe.
Leverage doesn’t change your risk — your stop does
Leverage only decides how much margin the exchange locks. With a fixed stop and a fixed size, 5x and 50x lose the same amount if the stop is hit. What leverage does change is how close the liquidation price is. Push it too far and the exchange liquidates you before your stop, and you lose the whole margin instead of the 1R you planned.
| Leverage | Margin | Liquidation (est.) | Before the 83,600 stop? |
|---|---|---|---|
| 5x | $246 | ≈ 67,781 | No — stop first |
| 10x | $123 | ≈ 76,201 | No — stop first |
| 50x | $24.6 | ≈ 82,937 | No — but only 663 below the stop |
| 100x | $12.3 | ≈ 83,779 | Yes — liquidated first |
Same BTC example, 0.5% maintenance margin. Here anything above about 82x puts liquidation in front of the stop — the calculator shows that limit as “max leverage before stop”.
How the liquidation price is estimated
Short: Liquidation ≈ Entry × (1 + 1 ÷ Leverage − Maintenance margin)
This is the isolated-margin approximation for USDT-margined perpetual futures. Real exchanges use tiered maintenance margin (it rises with position size), may add fees and funding, and with cross margin your whole balance backs the position, so the price moves. Use it to check that your stop is safely in front of liquidation, then confirm on your exchange’s order screen.
Spot trading
For spot, set leverage to 1. There is no liquidation; the size and the loss at the stop are worked out the same way, and the margin equals the position value.
Frequently asked questions
How do I calculate position size for crypto futures?
Divide your risk in USDT by the distance between entry and stop (plus fees per coin). That gives the number of coins. Multiply by the entry price for the position value, and divide by leverage for the margin.
Does higher leverage mean more risk?
Not if your size comes from your stop: the loss at the stop is the same at any leverage. Higher leverage moves the liquidation price closer, and if it comes before your stop you can lose the whole margin.
How is the liquidation price calculated?
For an isolated long, roughly entry × (1 − 1/leverage + maintenance margin rate); for a short, entry × (1 + 1/leverage − maintenance margin rate). Exchanges use tiered rates and their own formulas, so treat it as an estimate.
What leverage should I use?
Any leverage that keeps the liquidation price safely beyond your stop and the margin within your account. The calculator shows the highest leverage before liquidation reaches your stop; staying well below it leaves room for fees and wicks.
Why is my exchange’s liquidation price different?
Exchanges apply tiered maintenance margin, fees and funding, and cross margin uses your whole balance. This calculator uses the simple isolated-margin formula with the rate you enter.
Does this work for spot crypto?
Yes. Set leverage to 1 — the coins and the loss at the stop are calculated the same way, and there is no liquidation.
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