Technical Definition

Position Size

Position size is the amount of capital allocated to a single trade.

By Crypto University Editorial
Risk ManagementStop LossLeverage

✦ Key Insight

Proper sizing is one of the most important aspects of risk management.

✕ Common Misconceptions

Oversizing positions

Ignoring volatility

Detailed Explanation

How It Works

Many traders risk only 1–2% of their portfolio per trade.

FAQs

Why is position sizing important?
It helps preserve capital.

In Practice

“$10,000 account 1% risk = $100 maximum loss”