[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"glossary-term:position-sizing":3,"glossary-all":19},{"slug":4,"category":5,"title":6,"body":7,"meta_desc":8,"related":9},"position-sizing","risk-management","Position Sizing","Position sizing is the process of deciding how large a trade to take relative to your account size and the risk you're willing to accept, usually expressed as a percentage of account equity risked per trade (commonly 1–2%). It accounts for your stop-loss distance and the pip value of the instrument to calculate the exact lot size that keeps a single loss within your risk tolerance.\n\nConsistent position sizing is widely considered more important to long-term trading survival than any single entry or exit decision.","Calculating how large a trade should be based on your account size, risk tolerance, and stop-loss distance — a cornerstone of risk management.",[10,13,16],{"slug":11,"title":12},"leverage","Leverage",{"slug":14,"title":15},"lot","Lot",{"slug":17,"title":18},"drawdown","Drawdown",[20,24,27,28,31,32,35,39,42,45,46,49,52,55,58,62,65,68,69],{"slug":21,"category":22,"title":23},"pip","fundamentals","Pip",{"slug":25,"category":22,"title":26},"spread","Spread",{"slug":11,"category":22,"title":12},{"slug":29,"category":22,"title":30},"margin","Margin",{"slug":14,"category":22,"title":15},{"slug":33,"category":22,"title":34},"bid-ask","Bid\u002FAsk",{"slug":36,"category":37,"title":38},"slippage","trade-mechanics","Slippage",{"slug":40,"category":5,"title":41},"stop-loss","Stop-Loss",{"slug":43,"category":5,"title":44},"take-profit","Take-Profit",{"slug":17,"category":5,"title":18},{"slug":47,"category":5,"title":48},"margin-call","Margin Call",{"slug":50,"category":37,"title":51},"swap-rollover","Swap \u002F Rollover",{"slug":53,"category":37,"title":54},"going-long-short","Going Long \u002F Short",{"slug":56,"category":37,"title":57},"cfd","CFD (Contract for Difference)",{"slug":59,"category":60,"title":61},"ecn-vs-market-maker","brokers-regulation","ECN vs Market Maker",{"slug":63,"category":60,"title":64},"regulation","Regulation (FCA, CySEC, ASIC)",{"slug":66,"category":5,"title":67},"negative-balance-protection","Negative Balance Protection",{"slug":4,"category":5,"title":6},{"slug":70,"category":22,"title":71},"volatility","Volatility"]