Total position value
Know how much market exposure the trade creates.
POSITION SIZE GUIDE
EXPOSURE / COLLATERAL / LEVERAGE
Understand position size before opening a crypto trade.
Position size is the amount of market exposure a trade creates. It should be reviewed together with collateral, leverage, volatility and liquidation risk rather than treated as an isolated number.
EXPOSURECOLLATERALRISK
POSITION SIZE BASICS
A trade can be too large even when the direction is right.
Market direction, trade size and leverage all contribute to outcome. Larger exposure creates larger gains and losses for the same percentage market move, while leverage can increase that exposure relative to the collateral available.
Equity supporting the trade
Compare position size with the collateral available.
Exposure amplification
Higher leverage can make losses affect equity faster.
Expected price movement
More volatile markets can require more conservative sizing decisions.
Distance to forced closure
Large leveraged positions can become vulnerable to liquidation more quickly.
Plan the reduction
Know how the position can be reduced or closed before opening it.
CHECK TOGETHER
Position size, leverage and collateral are connected.
BEFORE ENTRY
Review the exposure.
MARKETCorrect instrument
Confirm the market before calculating exposure.
SIZETotal notional amount
Understand the actual position rather than only the margin posted.
SIDELong or short
Direction determines how price movement affects the trade.
RISK
Know what can change quickly.
PRICEMarket movement
Losses scale with exposure.
MARGINAvailable equity
Reduced equity can increase liquidation risk.
FUNDINGHolding costs
Funding and fees can affect net account equity over time.
RELATED GUIDES
Learn the rest of the risk model.
POSITION SIZE FAQ
Quick answers.
What is position size?+
It is the total market exposure created by a trade.
Why does size matter?+
Larger exposure produces larger gains or losses for the same percentage move.
Should leverage be considered separately?+
No. Position size, leverage and collateral should be considered together.
SIZE WITH CONTEXT
Open HOODBTC Trade ↗Know your total exposure.
Review position size, collateral and leverage before submitting the order.