Position Sizing
Definition
Determining the appropriate trade size based on account risk tolerance and stop-loss distance.
Example
Risking no more than 1% of account per trade is standard position sizing.
Related Terms
Frequently Asked Question
What is Position Sizing?
Position Sizing determines the appropriate number of units or lots to trade based on account size, risk tolerance, and the distance to your stop-loss. The standard rule is to risk no more than 1-2% of account equity per trade.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.