If your account balance is 666 USDT, according to risk control principles, the loss (stop-loss amount) for a single trade should be controlled within 1%-2% of the account balance. Below are the detailed calculation steps:
Calculate the stop-loss amount
1. Risk ratio 1%-2%:
• 1% risk: 666 × 0.01 = 6.66 USDT
• 2% risk: 666 × 0.02 = 13.32 USDT
You can choose 6.66 USDT or 13.32 USDT as your stop-loss amount based on your risk tolerance.
Assuming your opening price is 0.46 USDT
1. Opening quantity (position size):
Assuming you buy a certain amount of DOGE, the calculation method is as follows:
Opening amount = Position size × Opening price
If you buy 2,000 DOGE, the opening amount is:
0.46 × 2,000 = 920 DOGE.
2. Calculation of stop-loss level:
Risk per unit = Stop-loss amount ÷ Position size
Stop-loss price = Opening price ± Risk per unit
1% Risk Calculation
• Stop-loss amount: 6.66 USDT
• Risk per unit:
6.66 ÷ 2,000 DOGE = 0.00333 USDT
• Stop-loss price (going long):
0.46 - 0.00333 = 0.45667 USDT
2% Risk Calculation
• Stop-loss amount: 13.32 USDT
• Risk per unit:
13.32 ÷ 2,000 DOGE = 0.00666 USDT
• Stop-loss price (going long):
0.46 - 0.00666 = 0.45334 USDT
How to flexibly adjust the position size?
If you feel that the position size is too large, you can adjust it to match the risk control objectives.
Formula: Opening quantity
Opening quantity = Risk amount ÷ Risk per unit
For example:
• 1% risk (6.66 USDT), stop-loss range 0.01 USDT:
Position size = 6.66 ÷ 0.01 = 666 DOGE
• 2% risk (13.32 USDT), stop-loss range 0.01 USDT:
Position size = 13.32 ÷ 0.01 = 1,332 DOGE
Practical operation suggestions
1. Set stop-loss:
• If the opening price is 0.46 USDT:
• 1% risk: Set the stop-loss price at 0.45667 USDT.
• 2% risk: Set the stop-loss price at 0.45334 USDT.
2. Partial stop-loss:
• If the market approaches the stop-loss point but does not fall sharply, you can reduce the position in batches.
• Or adjust flexibly based on support levels, but strictly control the maximum loss.
3. Risk control principles:
• Never let a single loss exceed 6.66-13.32 USDT (1%-2%).
• If unsure, it is recommended to operate with a light position.
Summary
• Assuming your account balance is 666 USDT, the maximum loss for a single trade should be controlled within 6.66-13.32 USDT.
• The stop-loss point is calculated based on the risk amount and position size, ensuring that the single loss does not exceed 1%-2% of the funds.
• In trading, strictly follow the stop-loss discipline and avoid excessive position increases that lead to uncontrolled risks.
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If you are doing 10x leveraged contract trading, stop-loss and risk management become even more important, as leverage amplifies your profits and losses. Here is how to calculate stop-loss and perform risk management in detail:
Stop-loss calculation under 10x leverage
When doing contracts, your actual risk amount is calculated based on your margin (initial funds), not the total position value. Below are the specific steps:
Formula
1. Total position value = Opening price × Position size
2. Margin = Total position value ÷ Leverage
3. Maximum loss amount (risk control) = Total account funds × Risk ratio (1%-2%)
4. Stop-loss price = Opening price ± (Maximum loss amount ÷ Position size)
Example: Total account funds 666 USDT, opening price 0.46 USDT, 10x leverage
1. Assume you buy 10,000 DOGE (opening quantity)
• Total position value = 0.46 × 10,000 = 4,600 USDT
• Margin = 4,600 ÷ 10 = 460 USDT (occupied margin)
2. Risk management: Assume you accept a total fund risk of 1%-2%
• Maximum loss amount:
• 1% risk = 666 × 0.01 = 6.66 USDT
• 2% risk = 666 × 0.02 = 13.32 USDT
3. Calculate stop-loss point
• Loss per unit = Maximum loss amount ÷ Position size
• 1% risk: 6.66 ÷ 10,000 = 0.000666 USDT
• 2% risk: 13.32 ÷ 10,000 = 0.001332 USDT
• Stop-loss price (going long):
• 1% risk: 0.46 - 0.000666 = 0.459334 USDT
• 2% risk: 0.46 - 0.001332 = 0.458668 USDT
Key points of leverage amplification
Under 10x leverage:
1. Total risk amount (1%-2% of account funds) is what you need to strictly control because leverage amplifies the speed of losses.
2. Liquidation price risk: Be mindful of whether your stop-loss price is close to the liquidation price. If the stop-loss point is too low, it may approach the liquidation risk (can be checked on the contract platform).
Comprehensive strategy: How to operate 10x leveraged contracts
1. Ensure total risk does not exceed 1%-2% of account funds
• Under 10x leverage, your risk is amplified. Use stop-loss points and position management to ensure the loss amount is controllable.
2. Open positions in batches or operate lightly
• Do not go heavy all at once, especially in a highly volatile market; light positions can reduce the risk of liquidation or margin call.
3. Use fixed take-profit and stop-loss
• Stop-loss target: Set strictly according to risk management (e.g., 0.459 or 0.458).
• Take-profit target: Set based on risk-reward ratio (e.g., 1:2 or 1:3). For example:
• If the stop-loss price is 0.459, the take-profit target = Opening price + (Opening price - Stop-loss price) × 2
• Assuming the stop-loss range is 0.001, the take-profit target = 0.46 + (0.001 × 2) = 0.462
4. Avoid frequent trading
• High leverage will exacerbate account volatility; strictly select high-probability trading opportunities and avoid chasing trades casually.
5. Pay attention to liquidation prices
• Ensure the stop-loss point is above the liquidation price to avoid liquidation risk. For example, if the liquidation price is 0.45, the stop-loss point should be above 0.455.
Summary: Stop-loss and take-profit under 10x leverage
• Core of risk control: Maximum loss amount for each trade ≤ 1%-2% of total account funds.
• Stop-loss price calculation:
1% risk stop-loss price = Opening price - (Maximum loss amount ÷ Position size).
• Take-profit target: At least 2-3 times the stop-loss (set based on risk-reward ratio).
• Operational discipline: Light positions, strict stop-loss, and avoiding excessive trading are key to maintaining stability in high-leverage contract trading.
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Detailed example: 10x contract leverage trading
Basic parameters
• Account funds: 666 USDT
• Leverage ratio: 10x
• Opening price: 0.46 USDT
• Total risk control: Maximum loss = 1%-2% of account funds
Step 1: Calculate opening quantity
Formula:
Position size = Total funds × Leverage ÷ Opening price
Calculation:
• Position size =
(At this point, total position value = , occupied margin = )
Step 2: Calculate stop-loss price
Formula:
Stop-loss amount = Total funds × Risk ratio (1%-2%)
Risk per unit = Stop-loss amount ÷ Position size
Stop-loss price = Opening price - Risk per unit (when going long)
1% Risk Stop-loss Calculation
• Maximum loss amount = 666 × 0.01 = 6.66 USDT
• Risk per unit =
• Stop-loss price = 0.46 - 0.00046 = 0.45954 USDT
2% Risk Stop-loss Calculation
• Maximum loss amount = 666 × 0.02 = 13.32 USDT
• Risk per unit =
• Stop-loss price = 0.46 - 0.00092 = 0.45908 USDT
Step 3: Calculate take-profit price
The take-profit target is calculated based on the risk-reward ratio (1:2 or 1:3).
Formula:
Take-profit amount = Stop-loss amount × Risk-reward ratio
Take-profit price = Opening price + Risk per unit
1% Risk, 1:2 Take-profit
• Take-profit amount =
• Risk per unit =
• Take-profit price = 0.46 + 0.00092 = 0.46092 USDT
1% Risk, 1:3 Take-profit
• Take-profit amount =
• Risk per unit =
• Take-profit price = 0.46 + 0.00138 = 0.46138 USDT
2% Risk, 1:2 Take-profit
• Take-profit amount =
• Risk per unit =
• Take-profit price = 0.46 + 0.00184 = 0.46184 USDT
2% Risk, 1:3 Take-profit
• Take-profit amount =
• Risk per unit =
• Take-profit price = 0.46 + 0.00276 = 0.46276 USDT
Result summary
Risk ratio Stop-loss price Take-profit price (1:2) Take-profit price (1:3)
1% 0.45954 0.46092 0.46138
2% 0.45908 0.46184 0.46276
Strategies and suggestions
1. Stop-loss settings:
• Based on your risk tolerance, choose a stop-loss amount of 1% or 2% and set the stop-loss price to the corresponding value (e.g., 0.45954 or 0.45908).
• Set a stop-loss order on the contract platform to ensure automatic liquidation when the market falls to that price.
2. Take-profit settings:
• Choose the take-profit price based on the risk-reward ratio (e.g., 1:2 at 0.46092 or 1:3 at 0.46138).
• Set a take-profit order on the contract platform to avoid emotional trading that leads to missed opportunities.
3. Light position operation:
• High leverage means high risk; it is advisable to maintain a proper position (such as keeping the position size controlled between 10,000-14,478 DOGE) to avoid excessive fluctuations leading to liquidation.
4. Observe market sentiment:
• If the price approaches the take-profit target and the transaction volume increases, you can appropriately adjust the take-profit target to a higher level.
• If the price rebounds weakly, you can partially liquidate near the take-profit target.
Risk warning
10x leveraged trading can amplify profits, but risks also increase exponentially:
• Strictly execute stop-loss to avoid losses exceeding the account's tolerance range.
• Pay attention to liquidation prices (as displayed on the contract platform) and ensure the stop-loss price is above the liquidation price to avoid forced liquidation.
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Method 2 - Set stop-loss at 1% of the opening price and take-profit at 2%-3%
This method is a simplified way to set stop-loss and take-profit prices directly based on the percentage of the opening price. This method is suitable for quick decision-making and may bring greater profits, but it still needs to comply with risk management principles.
Assuming conditions
1. Opening price: 0.46 USDT
2. Leverage ratio: 10x
3. Account funds: 666 USDT
4. Opening quantity: Position is .
Stop-loss and take-profit calculation
1% Stop-loss
Formula:
Stop-loss price = Opening price - (Opening price × 1%)
Calculation:
• Stop-loss range =
• Stop-loss price =
2%-3% Take-profit
Formula:
Take-profit price = Opening price + (Opening price × Take-profit ratio)
Calculation:
• 2% Take-profit range =
Take-profit price =
• 3% Take-profit range =
Take-profit price =
Profit and loss calculation
Loss amount (1% stop-loss)
Formula:
Loss amount = (Opening price - Stop-loss price) × Opening quantity
Calculation:
•
• (Loss of approximately 66.6 USDT, accounting for 10% of account funds)
Profit amount (2%-3% take-profit)
Formula:
Profit amount = (Take-profit price - Opening price) × Opening quantity
2% Take-profit:
•
• (Profit of approximately 133.6 USDT)
3% Take-profit:
•
• (Profit of approximately 199.8 USDT)
Profit-loss ratio
Through the above calculations, you can obtain the profit-loss ratio (the ratio of profit to loss):
1. 1% Stop-loss, 2% Take-profit
• Profit-loss ratio =
2. 1% Stop-loss, 3% Take-profit
• Profit-loss ratio =
Summary comparison
• More profit: Setting stop-loss at 1% of the opening price and take-profit at 2%-3% theoretically offers a higher profit ratio, suitable for traders with stronger risk tolerance.
• Risk point: The stop-loss ratio is relatively small (1%), which may be more easily triggered by short-term price fluctuations, leading to frequent losses.
Suggested improvement strategies
1. Maintain a reasonable position: Since 10x leverage amplifies risks, it is advisable to allocate a smaller position based on total funds (e.g., reduce opening quantity to 10,000 DOGE).
2. Combine with technical levels: When calculating stop-loss based on 1%-2% of the opening price, confirm whether the stop-loss price is near reasonable support levels to avoid being stopped out due to random fluctuations.
3. Take-profit in batches: Sell in batches between 2% and 3% take-profit. For example:
• Sell 50% of the position at 0.4692.
• Sell the remaining position at 0.4738.
Summary
Setting stop-loss at 1% and take-profit at 2%-3% can improve theoretical profits, but it must be combined with actual market fluctuations and support/resistance levels to avoid frequent stop-losses that cause capital losses. If you can strictly follow the discipline, this strategy will yield higher returns under high leverage, but you need to pay attention to the impacts of short-term fluctuations.
