Isolated margin only
Your loss is capped at the margin of that trade. In cross mode, a crash can take your whole account.
Leverage multiplies everything — profits and losses
Before you act on any signal, work out how much you'd lose if it fails. Here are the rules that keep leveraged trading from turning into a lottery, plus a calculator for your own trade.
FIVE RULES
The bare minimum to follow
A Stop Loss on every trade
Set it before you enter, and always closer than the liquidation price. Without a stop, only liquidation limits your loss.
20% risk per trade
An aggressive setting: position size is calculated from the stop, but 5 stops in a row cut your deposit by about 67%, and 10 by about 89%.
A stable connection
On a phone with a weak connection, an order can go out late and fill at a different price.
Careful around the news
Around CPI releases and Fed meetings, stops can fill noticeably worse than their set price.
ISOLATED OR CROSS
Same crash, different loss
You have 400 USDT in the account and put 100 USDT into a trade. The market crashes, the stop can't fill in time and the position is liquidated. You lose only that trade's margin; 300 USDT stays in your account.
Same account, same trade. The exchange uses your entire balance to keep the position open, so liquidation comes later — and takes far more. In the worst case, your account goes to zero.
CALCULATOR
Run the numbers before you enter
Leverage
Maximum loss at the stop−10 USDT
Position size500 USDT
Margin required at 10x50 USDT
Liquidation after roughly9.50% against you
Entry and exit fees≈ 0.5 USDT
Your stop (2%) triggers before liquidation (≈9.50%). Your loss is capped at 10 USDT plus fees and any slippage.
A simplified calculation: it assumes a 0.5% maintenance margin and fees of 0.1% of the position for entry and exit combined. Check the exact figures on your exchange — they depend on the pair and position size. LIQUIDATION
How far the price can move against you
LeverageMove to liquidation
1xNo liquidation (same as spot)
3x≈ 32.8%
5x≈ 19.5%
10x≈ 9.5%
20x≈ 4.5%
50x≈ 1.5%
100x≈ 0.5%
Simplified for an isolated position with a 0.5% maintenance margin. Bitcoin typically moves 2–5% in a day; altcoins move more.
RESPONSIBILITY
Who is responsible for what
Stonks
- Publishes signals based on transparent rules
- Shows every signal and its outcome, losses included
- Explains the methodology and the risks
You
- Decide whether to open a trade, and with what leverage and size
- Set the Stop Loss and manage the position
- Bear the financial outcome of your trades
No one can
- Guarantee profits in the crypto market
- Rule out slippage, exchange outages or sudden moves
- Recover funds lost in a trade
Learn how a signal is built
An interactive walkthrough of a signal message and 20 short reads on leveraged trading.
The information on this page is educational. It is not investment advice, a solicitation or instructions to trade.