Frequently Asked Questions
Get answers to common questions about position sizing, funding rates, and our trading calculators.
What is position sizing and why is it important?
Position sizing is determining how many units to trade based on your account balance and risk tolerance. It's crucial because it protects your capital and ensures you can survive losing streaks. Professional traders typically risk only 1-2% of their account per trade.
How do I calculate position size?
Position size = (Account Balance × Risk %) / (Entry Price - Stop Loss Price). For example, with $10,000 balance, 2% risk ($200), entry at $50,000, and stop loss at $49,000, you can trade 0.2 units. Use our free position sizing calculator for instant calculations.
What is a funding rate?
Funding rates are periodic payments exchanged between long and short traders to keep perpetual contract prices aligned with spot prices. They are paid every 8 hours (3 times per day). Positive rates mean longs pay shorts, negative rates mean shorts pay longs.
How do I avoid liquidation?
To avoid liquidation: 1) Keep liquidation price at least 20% away from entry, 2) Use lower leverage, 3) Add more margin if needed, 4) Set stop-loss orders, 5) Monitor your positions closely. Always use proper position sizing to manage your risk.
What is the difference between isolated and cross margin?
Isolated margin limits your risk to only the margin allocated to that specific position. Cross margin uses your entire account balance as collateral, providing more flexibility but also higher risk if multiple positions move against you.
Are these calculators free?
Yes! All our trading calculators are completely free to use. No signup required, no credit card needed. Just open the tool and start calculating.
Do these calculators work for all exchanges?
Yes, our calculators work for any exchange including Hyperliquid, Binance, Bybit, and others. The calculations are universal and apply to all perpetual futures markets.
How accurate are the calculations?
Our calculators use industry-standard formulas used by professional traders. However, actual trading results may vary based on market conditions, slippage, and exchange-specific fees. Always verify calculations with your exchange.
Can I use these tools on mobile?
Yes! All our tools are fully responsive and work perfectly on mobile devices, tablets, and desktops. Calculate your position sizes and funding costs on the go.
Do you store my data?
No. We don't store any of your trading data or calculations. All calculations happen in your browser. We only collect email addresses if you choose to subscribe to updates, and you can unsubscribe at any time.
Still have questions?
Check out our trading tools or read our blog for more in-depth guides.