Position size
In short
Position size determines how much capital sits in one trade. Done right, it is computed backwards: from allowed risk and stop-loss distance — not from gut feeling.
Formula: risk amount ÷ stop distance in percent = position size. Risking €100 with a stop 5% away means trading €2,000 — regardless of conviction. Our calculator does the math for you.
Why not just always bet the same amount?
Because equal stake with different stop distances means completely different RISK.
Related terms
Information, not investment advice. More of this? The newsletter.