TRADING GLOSSARY
Position sizing
Position sizing is choosing how many lots to trade so that hitting your stop loss costs a set share of your account.
EXAMPLE
Risking 1% of a $5,000 account with a 25-pip stop on EURUSD means trading 0.20 lots.
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RELATED TERMS
Full glossary A–Z →Put the theory into practice.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure