Many traders size by asking: “If my stop is hit, how much of my equity should I lose?” That implies: pick risk % (or a fixed USD cap), measure stop distance in ticks for the exact pair, then solve for the position in coins that matches that dollar risk. Calculators tie tick value to size so you are not hand-iterating.
Why tick value sits in the middle
Risk in USD depends on tick value at the final size—the quantity you are solving for. Tools resolve that internally; your job is to feed the same tick definition your venue uses for the stop distance you measured.
Slippage and gaps
Models assume stops fill near the planned price. In fast markets or thin books, realized loss can exceed the plan. Treat outputs as planning aids, not guarantees.
Use MyCryptoCal’s position size calculator with the tick value calculator for a consistent workflow.
Walking through a risk-first example
Suppose you refuse to lose more than one percent of equity on a trade and you already know your invalidation distance in ticks. The sizing pipeline is: equity → risk dollars → tick value at candidate size → solve for coins. Calculators exist so you do not have to guess-and-check by hand.
Where traders quietly break the model
Slippage, widening spreads around listings, and gap opens can all make realized loss larger than the plan built from mids. Some traders add a buffer—for example sizing to 0.8% when the hard cap is 1%—to leave room for execution variance.
- Declare whether risk percent is of balance or equity.
- Decide if open risk from other positions shares the same cap.
- Note whether funding should shrink effective risk on perps.
After the trade
Compare modeled risk to realized loss when stops hit. Patterns in the gap teach you whether your buffer is too thin or your stop sits in noise for that symbol.