⚠ This is NOT a trading signal!
This is an example of how to calculate a stop-loss level for futures based on risk percentage.
What is a Stop-Loss (SL)?
A stop-loss is an automatic exit from a trade when the price reaches a certain level. It helps limit losses.
Using SL correctly helps traders manage risk and avoid losing their entire deposit.
Example Calculation ($XRP /USDT Pair)
Input Data
Deposit: $100
Risk: 1% ($1 max loss per trade)
Leverage: x10
Entry Price: $2.4329 USDT
Trading Pair: XRP/USDT
Step 1: Calculating the Risk Amount
Since the risk per trade is 1% of $100:
Step 2: Calculating Position Size with Leverage
Since you are using x10 leverage, your total position size will be:
Now, let's calculate how much XRP you can buy with $1000 at the entry price $2.4329 USDT:
Step 3: Calculating the Stop-Loss Level
The formula to calculate the stop-loss distance:
So, the stop-loss should be $0.0024$ USDT below the entry price:
Step 4: Calculating the Take-Profit Level
For a Risk:Reward ratio of 1:2 (profit is 2x the risk), the take-profit level will be:
Final Result
✅ Stop-Loss (SL): $2.4305$ USDT
✅ Entry Price: $2.4329$ USDT
✅ Take-Profit (TP): $2.4377$ USDT
💡 With leverage, your risk remains $1, even though the total position size is $1000.
Important Notes
🔹 Don't set SL too close – small price swings might stop you out.
🔹 Stick to your strategy – don’t move SL just because of emotions.
🔹 Always calculate risk before entering a trade.
🔹 Use trailing stop-loss to move SL automatically if the price moves in your favor.
This is just one way to calculate SL. Other methods include support/resistance levels (technical analysis) and ATR (market volatility).
