Position Sizing for Token Traders: How to Calculate the…
By Damilola Esebame
AI summary of the source article
CME Group reported crypto derivatives average daily volume surged 139% in 2025 to 278,000 contracts. Meanwhile, crypto futures liquidations exceeded $150 billion across major exchanges in 2025 as traders navigate liquidation risks.
Why it matters
Position sizing determines how much capital enters each trade, helping traders manage potential losses and control portfolio risk.
Key facts
- CME Group's crypto derivatives average daily volume surged 139% in 2025 to a record 278,000 contracts, or roughly $12 billion in daily notional value.
- Crypto futures liquidations exceeded $150 billion across major exchanges in 2025.
- In January 2026, more than 182,000 traders were liquidated in a single session, with losses topping $1.08 billion.
Source excerpt · FinanceFeeds
KEY TAKEAWAYS Position sizing determines how much capital enters each trade, helping traders manage potential losses and control portfolio risk. The fixed fractional method limits the amount at risk to a fixed percentage, commonly 1% to 2% of account equity per trade. The Kelly Criterion calculates optimal bet size using win rate and reward ratio, but traders may use quarter or half Kelly to reduc…