Position Size Calculation - Example 1

30 ก.ค. 2022

1. INPUT
PE = Capital($) = 1000
RP = Risk (%) = 2 %
EP = Entry Price = 1719.78
XP = Exit Price = 1733.75


2. OUTPUT (Goal)
PS = Position Size = ?
LEV = Leverage = ?
IM = Initial Margin = ?


3. CALCULATION
RD = Risk ($) = 1000 * (0.02) = 20
SLD = |EP - XP| = |1719.78 - 1733.75| = 13.97
SLP = Stop Loss (%) = (SLD / EP) = (13.97 / 1719.78) = 0.0081
PS = Position Size ($) = RD / SLP = 20 / 0.0081 = 2469.13
CPV = Current Price Value = EP = 1719.78
QNT = Quantity = PS / CPV = 2469.13 / 1719.78 = Roundup(1.435) = 2


4. Assumption and Final Calculation
LEV = {3, 5, 10, 20}
IM = PS / LEV = 2469.13 / {3, 5, 10, 20} = {823.04, 493.826, 246.913, 123.4565}