Position Sizing
Understand how position size, stops, risk/reward and account exposure affect outcomes.
Position Sizing
Size can be estimated by dividing a cash risk budget by loss per unit at the planned stop. Round down to a permitted lot increment and account for fees, conversion and slippage. A stop-based estimate is not a guarantee of maximum loss.
Example
A $20 risk budget and $10 loss per lot per pip over a 20-pip stop suggests 0.10 lots before costs.
All educational content is provided for general information and educational purposes only. It does not constitute investment advice, financial advice or a recommendation to buy or sell any financial instrument. Trading leveraged products involves significant risk and may result in the loss of invested capital.