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Definition

Position sizing

Choosing trade size from risk: lots = (account × risk%) ÷ (stop distance × pip value).

Sizing is the one lever that converts any strategy into a rule-compliant one: fix risk per trade at a fraction of the daily limit and drawdown breaches become nearly impossible.

Round position sizes DOWN to the platform's lot step — rounding up silently risks more than planned.

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Related terms

General industry definitions — individual firms define terms differently in their own ToS; the decoded rulebook for each firm is the source of truth. Educational, not financial advice.