How the calculation works
Amount at risk = account balance × risk %. With a $5,000 account and 1% risk, a losing trade should cost about $50.
Position size (coins) = amount at risk ÷ |entry − stop|. A wider stop means a smaller position for the same risk.
Leverage needed = position value ÷ account balance. If that is above the coin's max leverage on Hyperliquid, the trade cannot be opened at that size.
The liquidation check uses the isolated-margin formula from the Hyperliquid docs at the leverage needed. If liquidation sits between your entry and your stop, the position would be closed before the stop is reached. Fees and slippage are not included.
FAQ
How much should I risk per trade?
Many traders cap risk at 0.5% to 2% of the account per trade so a losing streak does not wipe them out. This is a common rule of thumb, not advice; choose what fits you.
Is leverage the same as risk?
No. Risk is set by position size and stop distance. Leverage only decides how much margin you post. High leverage with a tiny position can be lower risk than low leverage with a huge one, but it moves the liquidation price closer.
Why does the calculator warn about liquidation?
If your stop is further away than the liquidation price, the exchange closes the position first and you lose the margin. Use less leverage or a closer stop.
Sources: Hyperliquid docs: Liquidations. Formulas checked against the Hyperliquid docs on 10/17/2026.