BRVX course: Perp trading basics · 8 min read · Updated September 25, 2026
Position sizing is deciding how large a trade should be so that, if the stop-loss is hit, you lose a fixed share of your account — commonly 1%. It matters more than entries: BRVX caps leverage per market, so size, not the leverage setting, has to set the risk.
Two traders take the same trade with the same stop. One loses 1% of the account, the other 25%. The only difference is size. This lesson turns the stop-loss into a size.
Key takeaways
- Decide the loss first, then the size.
- Size = account risk ÷ stop distance.
- Leverage only decides how much margin the size needs; it does not change the risk if the stop holds.
The formula
Position size = (account × risk per trade) ÷ stop distance in %. With a 2,000 USDT account, 1% risk and a stop 4% away: 20 ÷ 0.04 = 500 USDT of position. At 5x that needs 100 USDT of margin; at 10x, 50 USDT. The loss at the stop is 20 USDT either way, before fees.
One account, one stop, three risk levels
| Risk per trade | Loss at stop | Position size (4% stop) | Account after 10 losses |
|---|---|---|---|
| 1% | 20 USDT | 500 USDT | ≈ 1,808 USDT |
| 3% | 60 USDT | 1,500 USDT | ≈ 1,475 USDT |
| 10% | 200 USDT | 5,000 USDT | ≈ 697 USDT |
Why 1% and not 10%
Losing streaks are normal. Ten losses in a row at 1% leave about 90% of the account; at 10% they leave about 35%, and the 187% gain needed to recover is out of reach for most strategies.
Where leverage fits
Leverage lets a small margin carry the size the formula gives. The danger is running it backwards: choosing 50x first and filling the account. Then the size is set by greed and the stop must be tiny, or the liquidation price comes before the stop.
How it looks on BRVX
BRVX charges fees on the position size, 0.1% to open and 0.1% to close on BTC/USDT, and funding on the full size every hour. Add both to the loss at the stop. BRVX's position size calculator runs this formula for any of the 41 markets.
Check yourself
Checked in your browser; nothing is saved.
Position sizing: common questions
What is the 1% rule in trading?
Risking no more than 1% of the account on any single trade, measured from entry to stop-loss.
Does higher leverage mean higher risk?
Only if it raises the size. With the same size and stop, the loss at the stop is the same; higher leverage does bring the liquidation price closer.
Should fees be included in position sizing?
Yes. Opening and closing fees and funding add to the loss if the stop is hit.
Lesson 4 of 15 done. Next: Risk management in trading
Open BRVXTrading crypto assets and using leverage involve significant risk. You may lose funds. BRVX does not provide investment advice or guarantee returns. Not available to US persons.