The concept
= amount you are willing to risk ÷ distance to your stop. It links risk to the market's movement.
Why it matters
Sizing is the main control you have over how much a single idea can hurt you.
How markets interpret it
Many educators suggest risking a small, fixed percentage per trade, such as 0.5–1%.
Key takeaways
- Size from risk and stop distance, not conviction.
- Use the position size calculator to practise.
Knowledge check
Risk $100, stop distance $10/oz. Size?
Key terms · hover or tap for a definition