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”