Exchange trading of various assets is a high-risk activity. You can make money in this market, but you can also lose money. This applies even to experienced traders who have been trading for decades. However, certain tools can help reduce risks and enhance your trading opportunities. One such service is a position size calculator.
Calculator Features
This application is designed to calculate risks in cryptocurrency trading, but it can also be used for other exchange-traded assets. It can help with calculations of various transaction parameters and take into account the risk percentage. In general, the calculator can perform the following functions:
- It allows you to select an asset to buy or sell, set the commission percentage for the transaction, consider the risk level, and specify the account from which the transaction will be executed.
- You can set levels at which you can stop the accumulation of losses if the market reverses against your open position, or lock in profits to maximize your gains.
- You can create a risk summary for all transactions.
- Optimal position sizes for transactions are calculated based on your account and income. The calculator takes into account commissions on all trades charged by exchanges and brokers and can determine how asset price fluctuations will impact risk.
The full name of the program, Scope360° Position Size Calculator, indicates that it can cover all aspects of the market, helping traders of any level.
Advantages of the application
This calculation method will become an important tool in the hands of a trader. The calculator allows you to determine the degree of risk, provides a clear picture of when to close a position, and determines the entry size based on the funds in your exchange account.
It will help you maintain trading discipline and avoid account drawdowns from unsuccessful transactions. Based on the set risk percentage, the device will show the amount you can buy the asset for to mitigate potential problems.
The calculator is a powerful tool; its use in combination with other analysis programs helps you make more informed decisions and increase your income. The system does not replace the trader or do everything automatically, but it does provide more accurate and comprehensive opportunities for trading cryptocurrency and other assets. The calculator has proven its usefulness in practice; it really improves a trader’s results.