What Is Position Size?
The total notional value of your trade, calculated as margin multiplied by leverage. Correct position sizing, where a stopped out trade costs a small fixed percentage of your account, is the single most important risk management skill in leveraged trading.
Related Terms
- Risk Management The set of rules that keeps you solvent: risking a small fixed percentage per trade, using stop losses, limiting open exposure and avoiding revenge trading.
- Leverage Borrowed buying power that lets you control a position larger than your capital.
- Stop Loss An order that automatically closes your position at a predefined price to cap your loss.
Where You Will Meet This Term
You will run into position size constantly on any futures exchange, from the order panel to the position dashboard. If you are still building your foundation, our guides on leverage, liquidation and risk management connect the vocabulary into an actual trading process, and the full glossary covers every other term you will encounter.