Stop Loss

Position Sizing

Position sizing converts your planned dollar risk and stop distance into the amount you should trade. The correct lot size comes after the risk decision, not before it.

A stop loss is an order intended to close a position when price reaches a predefined adverse level.

Stop Loss and Take Profit

A stop loss defines where the planned loss should be cut. A take-profit level defines where planned profit may be taken. Neither level guarantees execution at an exact price.