What is position sizing?Position Sizing
Deciding how much to buy on each trade based on how much risk you can take.
Learn “position sizing” in an animated lesson
- Crypto BasicsHigh Volatility and Position Sizing
Daily moves of 10% are common in crypto. See how high volatility magnifies drawdowns, and why position size matters.
- Forex BasicsWhat Is a Lot?
Forex is traded in lots. Your lot size decides how much money each pip you win or lose is worth.
- Forex: Pending Orders & RiskSizing Your Position from the Stop
First decide the most you'll lose on this trade, then work back to the lot size from the stop distance. That's the heart of risk control.
- Risk Management & Trading PsychologyPosition Sizing: Risk Only 1% per Trade
How much you buy isn't about how much is in your account; it's about where your stop is. Decide the most you'll lose first, then work back to the position size.
- Risk Management & Trading PsychologyWhere to Put Your Stop: ATR and Structure Stops
A stop that's too close gets swept by everyday noise; too far and your position gets tiny. Place the stop by volatility (ATR) or chart structure, then use position size to fix the risk at 1%.
- Indicators in Practice & BacktestingPosition Sizing and ATR Stops
Even the best signals lose sometimes. Deciding how much to lose per trade matters more than finding the perfect signal.
- Volume & Volatility IndicatorsAverage True Range (ATR)
How much does a candle move on average? ATR doesn't judge direction, only volatility, and it's most often used to set stops.
Related terms
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Go to “High Volatility and Position Sizing”