How to Calculate Risk in Binance (Simple Guide)
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If you're a beginner in crypto trading, understanding risk management is very important. Here's how to calculate your risk per trade in a very easy way:
Step 1: Know Your Capital
Let’s say you have $1000 in your Binance account.
Most smart traders risk only 1% to 2% per trade.
Example:
1% of $1000 = $10
So your maximum loss per trade should be $10.
Step 2: Set Entry and Stop-Loss
You decide to buy ETH at $2000
You set a stop-loss at $1950 (to limit your loss)
So your risk per ETH = 2000 - 1950 = $50
Step 3: Use the Formula😋
\text{Position Size} = \frac{\text{Risk Amount}}{\text{Risk per Coin}}
\text{Position Size} = \frac{10}{50} = 0.2 ETH
So you should buy only 0.2 ETH, not full ETH.
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Final Tip:
This method protects your money and helps you trade with discipline. Always calculate your risk before entering any trade.
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Are you managing your risk the smart way?
Start applying proper risk management today and protect your capital like a pro!
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