Position size

position sizing · lot size

DefinitionHow many units you trade, set so that the loss at your Stop Loss equals the amount you accept to risk.

Position size = amount you accept to lose ÷ distance from entry to Stop Loss.

If you accept to lose 50 and the stop is 2.5 away, the position is 20 units. With a wider, correct stop, the position gets smaller and the loss stays the same. That is how you keep risk constant across trades with different stops.

Leverage changes how much margin a position uses, not how much you lose at the stop.

Guides that use it

Risk management 2 min read Where to put a Stop Loss: structure, not hope A Stop Loss belongs where your trade idea is proven wrong, not at a round number or a random percentage. How to find that level on any chart. Updated October 13, 2026