What Is Forex Position Sizing? Risk Control + Risk-To-Reward Ratio Improvement

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

The amount of assets bought or sold in a trade is referred to as the position size. In different markets, position size has a different unit of measurement. For example, in the forex market, this unit is a lot.

Choosing the appropriate forex position sizing directly affects risk and money management. The position sizing in forex trading is calculated using the Risk to Reward RatioStop Loss, and Take Profit