Advanced Futures Orders: Master Risk-Based Position Sizing in 1 Minute | Hotcoin Academy

Hotcoin Fixed Risk Order Empowering Your Futures Trading

I. Feature Overview

II. Key Advantages

1. Manage Risk Before Entry Set the estimated maximum loss for each trade before opening a position, helping reduce the risk of excessive losses caused by emotional decision-making or sharp market movements.
2. Automatic Position Sizing for Faster Order Placement No need for complex manual calculations. The system automatically calculates the order quantity in real time based on preset parameters, making the order placement process faster and more efficient.
3. Automatic Stop-Loss Placement Once the opening order is filled, a stop-loss order is automatically placed. There is no need to manually set a stop-loss after opening the position, helping reduce the risk of not setting one in time.

III. Traditional vs. Risk-Based Position Sizing

IV. How to Use Risk-Based Position Sizing

1. Open the Trading Panel Go to the Hotcoin Futures page. In the order entry panel, switch the order type to Adv Limit and select Risk Sizing (Risk-Based Position Sizing).
2. Set Risk Parameters

• Entry Price: Set the intended entry price.
• Exit Price: Set the stop-loss trigger price for exiting the position.
• Loss Amount: Enter the maximum loss amount for the trade in USDT.
• Take-Profit Price (Optional): Set a take-profit trigger price if needed.

1. Review and Place the Order Based on the maximum loss amount and the difference between the entry and exit prices, the system will automatically calculate the order quantity. Review the details and submit the order. Once the opening order is filled, a stop-loss order will be placed automatically.

V. Use Cases and Risk Notice

Use Cases

• Breakout or Momentum Trading: When markets move quickly, traders can set a maximum loss amount and enter a position without complex manual position-sizing calculations.
• Precise Trade Management: Suitable for futures traders who strictly follow fixed risk-reward ratios and seek a more systematic approach to risk management.

Risk Notice