Position size, also known as notional value, is the total value of the trade you control.
It is not the same as the amount of money you deposit.
How Position Size Works
When trading perpetual contracts, your margin acts as collateral.
Leverage allows you to control a larger position than the amount you deposit.
For example:
Margin: $100
Leverage: 10x
Your position size becomes $1,000.
Although you deposited $100, your profit and loss are calculated based on the full $1,000 position.
Why Position Size Matters
Your position size affects:
Potential profits
Potential losses
Funding payments
Margin requirements
Larger positions increase both opportunity and risk.
Frequently Asked Questions
Is position size the same as my margin?
No.
Margin is the amount you commit to the trade.
Position size is the total market exposure created using your margin and leverage.