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Discernment Academy/Glossary/Position size
Glossary

Position size

How much of an asset a trade buys or sells. Sized from risk: position = account × risk per trade ÷ distance to the stop.

Why it matters

It decides how much a wrong trade costs. The same stop with a bigger position is a bigger risk.

Related terms
  • Stop order
  • Drawdown
  • Leverage
Learn it in
  • Risk per trade and position size: how much to buy
  • "If you enter now: stop, targets, R and Recent events"

Education only, not financial advice · All terms

Discernment Academy teaches how markets work. It is education only, not financial advice. Market data from Binance.

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