What is Position Sizing?
Updated October 19, 2026
Position sizing is choosing how big each trade is based on your account and how far your stop loss is.
You decide what you'll risk in money, then pick a lot size that matches your stop distance.
Wider stop means smaller lot. Tighter stop means you can go a bit bigger.
This one habit protects accounts more than any indicator.
Example
You risk $20 with a 20 pip stop on EURUSD, so you trade 0.10 lots.
Questions people ask
Is there a calculator?
Yes, free position size calculators are all over the web.
Do bots size positions?
Most let you set risk per trade or a fixed lot. Check it before going live.
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