Derivatives & Risk

How do you size a position based on risk?

Risk-based position sizing sets how much capital to commit to a holding by working backward from the loss you are willing to take, not from how much you want to gain. A common method fixes a per-trade risk budget, then divides it by the distance to your exit point to get position size. For example, risking 1% of a portfolio with a 10% stop implies a position near 10% of capital. This keeps any single position from dominating outcomes. Position discipline and fixed allocation rules sit at the centre of how Qatobit approaches portfolio construction. Explore the methodology to see the framing applied.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.