The ETHUSD position size calculator uses live market quotes, account equity, risk percentage, and stop loss to calculate the recommended lot size for your trades.
To get started, enter the currency pair (ETHUSD), account size, stop loss, account balance, and the percentage of your account balance or equity that you are willing to risk, then click on Calculate.
Currency Pair (ETHUSD): This is the specific pair you're trading – Ethereum (ETH) against United States Dollar (USD).
Account Size: This is the total amount of money in your trading account. It's the total capital that you have available for trading.
Stop Loss: The stop loss is the point where you decide to close a trading position with a loss. This figure is critical as it will help limit potential losses. You'll need to know how many pips away your stop loss will be. A pip is a unit of measure for price changes in the crypto trading market.
Account Balance: The account balance refers to the amount of money you have in your account after taking into consideration all the trades you have open.
Risk Percentage: This is the percentage of your account size that you're willing to risk on each trade. It is a personal decision and depends on your risk tolerance. For example, if your risk percentage is 2%, you're saying that you're willing to risk losing 2% of your account balance on a single trade.
Now that you've entered all the required details, here's what to do:
Click on the ‘Calculate' button. The calculator will then compute the ideal position size for your ETHUSD trade. This is the amount of Ethereum you should buy or sell, while adhering to the risk management parameters you've set.
The calculator makes it easier for you to manage risk, by suggesting a position size that aligns with your specified risk level.
Remember, the figures generated by the calculator are only recommendations based on the information you have input. Trading always carries risk, and you should not risk more than you are prepared to lose. Comprehensive risk management is key in all trading decisions.