Position size

How large a position to take, calculated as (account × risk %) ÷ (stop distance × value per point).

Size is an output, not a decision. The chart sets the stop, the stop sets the distance, and the arithmetic returns the size.

Trading a fixed lot size instead means risk changes with every setup by accident — largest on the trades that happened to need the most room.

Also called: position sizing, lot size.

Taught in

The arithmetic that turns a risk percentage and a stop distance into an actual position size.

Also covered in that lesson