Experimental

    Degen Position Size

    What's the max you can leverage this? This calculator shows maximum position size, liquidation distance, degen score, and reality check warnings. Compare to safe position sizing to see why maxing out leverage is dangerous.

    Enter your account size, leverage, optional stop loss, volatility, entry price, and maintenance margin. See maximum position size, liquidation distance, degen score, warnings, and comparison to safe sizing.

    LabsDegenPosition Sizing

    Your total account balance

    Leverage multiplier (e.g., 10x, 50x, 100x)

    Optional stop loss percentage (leave empty for no stop)

    Expected volatility (daily or typical price swing)

    Entry price for the position

    Exchange maintenance margin requirement (typically 0.5-1%)

    Maximum Position Size

    Max position you can open

    $100,000

    Margin Required$10,000
    Units1000.000000

    Liquidation Distance

    Price move that liquidates you

    9.50%

    Liquidation Price$90.50
    Volatility5.0%

    Degen Score

    Ape

    85/100

    Leverage10x
    No Stop LossNo

    Reality Check Warnings

    • ⚠️ No stop loss set — you can lose your entire account
    • ⚠️ Using 100% of margin — no buffer for other positions or margin calls
    • ⚠️ Ape-level degeneracy — this is gambling, not trading

    Safe Position Size (1% Risk, 2% Stop)

    Proper risk management sizing

    $5,000

    Margin Required$500
    Risk Amount$100.00

    Comparison

    Max vs Safe

    20.0x larger

    Margin Ratio20.0x
    Risk Ratio100x
    Want to understand this better?Read our position sizing guide

    Want these limits enforced automatically?

    Jungle Rebounder helps execute structured strategies with hard caps.

    See Jungle Rebounder

    Safe vs Max Position Comparison

    SafeMaxPosition Type$0k$25k$50k$75k$100kPosition Size ($)

    Comparison between safe position size (1% risk, 2% stop) and maximum position size (using all margin).

    Key Metrics

    Maximum Position
    $100,000
    20.0x larger than safe
    Liquidation Distance
    9.50%
    Price move that liquidates you
    Volatility vs Liquidation
    0.53x
    Volatility / Liquidation distance
    Safe Position
    $5,000
    1% risk, 2% stop loss
    Degen Score
    85/100
    Ape level
    Margin Utilization
    100%
    Using all available margin

    How It Works

    Calculation Methodology

    This tool calculates the maximum position size you can take with your account and leverage, then compares it to safe position sizing. It shows liquidation distance, degen score, and reality check warnings to help you understand why maxing out leverage is dangerous.

    Step 1: Calculate Maximum Position Size
    maxMargin = accountSize (using all margin)
    maxPositionSize = maxMargin × leverage
    maxUnits = maxPositionSize / entryPrice
    Step 2: Calculate Liquidation Distance
    liquidationDistance = (1 / leverage) - maintenanceMargin
    liquidationPrice = entryPrice × (1 - liquidationDistance)
    liquidationDistancePercent = liquidationDistance × 100
    Step 3: Calculate Safe Position Size
    safeRiskPercent = 1% (standard risk per trade)
    safeStopPercent = 2% (standard stop distance)
    safeRiskAmount = accountSize × safeRiskPercent
    safePositionSize = safeRiskAmount / safeStopPercent
    safeMarginRequired = safePositionSize / leverage
    Step 4: Calculate Degen Score (0-100)
    Leverage component: 2-5x = 10pts, 5-10x = 20pts, 10-50x = 30pts, 50x+ = 40pts
    Stop loss component: No stop = 20pts, tight stop = 15pts, moderate = 5pts
    Volatility vs liquidation: Close ratio = 20pts, moderate = 10pts
    Margin utilization: 100% = 20pts, 80% = 15pts, 50% = 10pts
    Score 0-25 = Safe, 26-50 = Moderate, 51-75 = Degen, 76-100 = Ape
    Step 5: Generate Reality Check Warnings
    Check if liquidation distance < volatility (normal moves can liquidate)
    Check if no stop loss set (can lose entire account)
    Check if extreme leverage (50x+ = tiny moves liquidate)
    Check if 100% margin used (no buffer for other positions)
    Examples:
    $10k account, 10x leverage, $100 entry
    → Max position: $100k, Liquidation: 9.5% down
    → Safe position: $5k (1% risk, 2% stop)
    → Max is 20x larger than safe
    $10k account, 50x leverage, $100 entry
    → Max position: $500k, Liquidation: 1.5% down
    → Safe position: $5k (1% risk, 2% stop)
    → Max is 100x larger than safe

    Key Insight: Maximum position size shows the math of what's possible, but it's extremely dangerous. A 10x leverage max position is 20x larger than safe sizing. A 50x leverage max position is 100x larger. The problem is that liquidation gets closer to entry as leverage increases — at 50x, a tiny 1.5% move liquidates you. This is why professional traders use 1-2% risk per trade, not maximum leverage. Maximum position size is for educational purposes only.

    Learn more about position sizing:

    Position sizing guide

    Example Scenario

    Setup: $10,000 account, 10x leverage, $100 entry, 0.5% maintenance margin

    Max Position: $100,000
    Max Margin: $10,000 (100%)
    Liquidation: 9.5% down ($90.50)
    Safe Position: $5,000
    Safe Margin: $500 (5%)
    Max vs Safe: 20x larger
    Degen Score: 60 (Degen level)

    What this means: Maximum position is $100k using all $10k margin. Liquidation happens at 9.5% down. Safe position is only $5k using $500 margin. The max position is 20x larger, which is why it's so dangerous. A 9.5% price move (normal market volatility) can liquidate your entire account.

    Common Mistakes & Warnings

    • Using maximum position size in real trading: This tool is educational. Maximum position size is extremely dangerous and will almost certainly lead to liquidation. Use proper position sizing (1-2% risk per trade) instead.
    • Ignoring liquidation distance: High leverage brings liquidation close to entry. At 50x leverage, a 1.5% move liquidates you. Normal market volatility (1-2%) can wipe you out.
    • Not understanding the comparison: Maximum position is 20-100x larger than safe sizing. This isn't a small difference — it's the difference between trading and gambling.
    • Using 100% of margin: Using all your margin leaves no buffer for other positions, margin calls, or market volatility. Professional traders use 10-20% of margin, not 100%.

    Example Scenarios

    Try these realistic scenarios to understand maximum position sizing at different leverage levels.

    Scenario 1: Moderate Leverage (10x)

    "Conservative" max position. Still extremely risky but shows the math.

    Account Size: $10,000
    Leverage: 10x
    Max Position: $100,000
    Liquidation: 9.5% down
    Safe Position: $5,000
    Max vs Safe: 20x larger

    What this means: Maximum position is 20x larger than safe sizing. A 9.5% price move liquidates your entire account. Even at "moderate" 10x leverage, maxing out is extremely risky.

    Scenario 2: High Leverage (50x)

    Extreme leverage. Very small price moves cause liquidation.

    Account Size: $10,000
    Leverage: 50x
    Max Position: $500,000
    Liquidation: 1.5% down
    Safe Position: $5,000
    Max vs Safe: 100x larger

    What this means: Maximum position is 100x larger than safe sizing. A tiny 1.5% price move liquidates you. Even normal market volatility (1-2%) can wipe you out. This is not trading — it's gambling.

    Scenario 3: Max Position with Stop Loss (10x)

    Max position with stop loss. Limits maximum loss but still extremely risky.

    Account Size: $10,000
    Leverage: 10x
    Stop Loss: 5%
    Max Loss: -$5,000 (-50%)
    Max Position: $100,000
    Safe Position: $5,000

    What this means: A 5% stop loss limits your maximum loss to 50% of account. This is better than liquidation, but still extremely risky. You're risking half your account on a single trade. This is not proper risk management.

    Frequently Asked Questions

    When should I use this tool?

    Use this tool when you're considering using high leverage and want to see the maximum position size you can take. It shows you the math, but also reality checks with warnings about why maxing out leverage is dangerous. This is educational — proper position sizing uses 1-2% risk per trade, not maximum leverage.

    What does 'maximum position size' mean?

    Maximum position size is the largest position you can open with your account and leverage, using all your margin. For example, with $10,000 account and 10x leverage, max position = $100,000. This is extremely risky because any significant price move against you will liquidate your account.

    How is liquidation distance calculated?

    Liquidation distance = (1 / leverage) - maintenanceMargin. For example, with 10x leverage and 0.5% maintenance margin: liquidation = (1/10) - 0.005 = 0.095 = 9.5%. This means a 9.5% price move against you will liquidate your position. Higher leverage = liquidation closer to entry.

    What is the degen score?

    Degen score rates how 'degen' your position sizing is: 0-25 (Safe), 26-50 (Moderate), 51-75 (Degen), 76-100 (Ape). It's based on leverage, stop loss distance, volatility, and margin utilization. Higher score = higher risk of liquidation.

    What are the reality check warnings?

    Reality check warnings highlight dangerous aspects of your position: liquidation risk, volatility risk, no stop loss, over-leveraged, etc. These warnings help you understand why maxing out leverage is dangerous, even if the math says you can do it.

    How does this compare to safe position size?

    Safe position size uses 1-2% risk per trade. For example, with $10,000 account, 1% risk, 2% stop: safe position = $5,000. Max position with 10x leverage = $100,000. The tool shows both so you can see the difference — safe sizing is 20x smaller, which is why it's safe.

    Should I actually use maximum position size?

    No — maximum position size is for educational purposes only. It shows you the math, but using it in real trading will almost certainly lead to liquidation. Professional traders use 1-2% risk per trade, which results in much smaller positions. Use the Position Size Calculator for proper sizing.

    How does volatility affect position sizing?

    High volatility means larger price swings, which increases liquidation risk. If volatility is 5% and your liquidation distance is 9.5%, you have some buffer. But if volatility is 10% and liquidation is 9.5%, you're at high risk of liquidation from normal market movements.

    What's the difference between this and All-In Calculator?

    All-In Calculator shows outcomes of going all-in with different leverage levels across price scenarios. Degen Position Size shows maximum position size you can take and compares it to safe sizing. Both are educational tools showing why extreme leverage is dangerous.

    Can I use this for actual trading?

    No — this tool is educational and shows why maxing out leverage is dangerous. Use it to understand the math and risks. For actual trading, use the Position Size Calculator with 1-2% risk per trade. Maximum leverage is gambling, not trading.