Frequently Asked Questions
Find answers to the most common questions about our calculators, risk management tools, privacy policy, and educational content.
Calculator & Tools
5 questionsHow does the position size calculator work?
Our calculator uses the standard position sizing formula: Position Size = Risk Amount ÷ |Entry Price − Stop Loss Price|. You enter your account balance, risk percentage, entry price, stop loss, and leverage. The calculator instantly computes your optimal position size, required margin, and potential profit/loss — all in your browser with no data sent to any server.
Is the calculator free to use?
Yes, 100% free — no sign-up, no subscription, no hidden fees. CryptoRiskCalc is and will always remain free for all traders. We believe proper risk management tools should be accessible to everyone.
What exchanges are supported?
The calculator works with any crypto exchange that offers USDT-margined futures — including Binance, Bybit, OKX, Bitget, and more. We also provide exchange-specific fee presets for Binance and Bybit so your calculations automatically include the correct maker/taker fees.
How is the liquidation price calculated?
The liquidation price is calculated using exchange-standard formulas that account for your entry price, leverage, margin mode (cross or isolated), and maintenance margin rate. For isolated margin longs: Liquidation Price = Entry × (1 − 1/Leverage + MMR). We use the decimal.js library for 20-digit precision to match exchange results as closely as possible.
Can I use the calculator for spot trading?
The position size calculator is primarily designed for futures/margin trading with leverage. However, you can use it for spot by setting leverage to 1x. This removes liquidation risk from the equation and simply tells you how many units to buy based on your risk tolerance and stop loss level.
Risk Management
5 questionsWhat is the 1% rule in trading?
The 1% rule states that you should never risk more than 1% of your total account balance on a single trade. For example, with a $10,000 account, your maximum loss per trade should be $100. This protects you from catastrophic drawdowns — even 10 consecutive losses would only cost 10% of your account.
What is a good risk/reward ratio?
Most professional traders aim for a minimum risk/reward ratio of 1:2, meaning they risk $1 to potentially make $2. A 1:3 ratio is even better. With a 1:2 ratio, you only need to win 34% of your trades to break even. The key is consistency — always set your take profit before entering a trade.
How do I choose the right leverage?
The right leverage depends on your experience, risk tolerance, and strategy. Beginners should start with 2x-5x. Even experienced traders rarely use more than 20x. Higher leverage means your liquidation price is closer to your entry, leaving less room for normal price fluctuations. A common approach is to use leverage only to optimize capital efficiency, not to increase position size beyond what your risk allows.
What is the difference between cross and isolated margin?
In isolated margin, only a specific amount of collateral is allocated to each position — if liquidated, you only lose that margin. In cross margin, your entire available balance is used as collateral, lowering liquidation risk but exposing your whole account. Most traders prefer isolated margin for better risk control.
How can I avoid liquidation?
The best ways to avoid liquidation: (1) Use lower leverage — 3x-5x gives you much more breathing room. (2) Always set a stop loss before your liquidation price. (3) Use isolated margin to limit potential loss. (4) Never risk more than 1-2% per trade. (5) Size your positions correctly using a position size calculator rather than guessing.
Account & Privacy
4 questionsDo I need to create an account to use the calculator?
No, absolutely not. CryptoRiskCalc requires zero sign-up. Just open the page and start calculating. We intentionally built it this way to remove any barrier between you and proper risk management.
Is my data stored on your servers?
No. All calculations happen entirely in your browser using client-side JavaScript. Your account balance, entry prices, stop losses, and all other trade parameters never leave your device. We have no database storing user trading data.
How does cookie consent work on this site?
We use a GDPR-compliant cookie consent banner. Essential cookies (like your theme preference) work without consent. Analytics cookies are only activated after you explicitly accept them. You can change your preferences at any time. We never use cookies for advertising or tracking your trading activity.
Can I use CryptoRiskCalc on mobile devices?
Yes! The entire site is fully responsive and optimized for mobile, tablet, and desktop. The calculator, learning resources, and all tools work perfectly on any screen size. No app download needed — just open it in your mobile browser.
Content & Learning
5 questionsAre the educational articles free to read?
Yes, all educational content on CryptoRiskCalc is completely free. Our learning center covers topics like position sizing, risk management, leverage trading, liquidation prevention, and more. No paywall, no premium tier — knowledge should be free.
How often is content updated?
We review and update all content quarterly. Exchange fee data, calculator formulas, and educational articles are verified against official exchange documentation. When exchanges update their fee structures or margin requirements, we update our tools accordingly.
Can I suggest a new article topic?
Absolutely! We love hearing from our community. You can suggest topics, report errors, or request new calculator features through our contact page. Many of our most popular articles — like the risk management checklist and the leverage guide — were created based on user suggestions.
Do you offer trading signals or financial advice?
No. CryptoRiskCalc is strictly an educational platform and calculator tool. We do not provide trading signals, investment advice, or specific trade recommendations. Our tools help you manage risk, but all trading decisions are yours. Always do your own research and never trade with money you cannot afford to lose.
What topics does the learning center cover?
Our learning center covers a wide range of crypto trading topics including: position sizing strategies, the 1% rule, risk/reward ratios, leverage trading for beginners, understanding liquidation, cross vs isolated margin, stop loss placement, trailing stops, DCA strategies, funding rates, maker/taker fees, and much more. New articles are added regularly.
Ready to start calculating?
Use our free position size calculator to optimize your risk management.
Open Calculator