Position sizing is deciding how large each trade should be so that a single loss stays within a small, planned share of your account. It is one of the most important survival skills in trading, turning your stop-loss distance into a specific lot size.
Forex Term
Position Sizing
Choosing trade size so one loss stays small and planned.
Example
Risking 1% of a $1,000 account with a 20-pip stop means sizing the trade so 20 pips equals $10.
Related Terms
Recommended Brokers
Pepperstone
Best for Copy Trading
Visit Pepperstone
Trading Forex and CFDs involves a significant risk of loss.
Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.