FIELD NOTES / a short guide

Risk before quantity

How the stop distance changes the order size.

With a fixed risk amount, a further stop means a smaller quantity. The basic maths divides the planned risk amount by the planned loss per unit. The quantity is rounded down.

What should you check?

The maths is a plan, not a promise. Fees, slippage and price gaps can increase the actual loss. If the risk you set doesn't cover one unit, raising the quantity to one unit already exceeds the plan.

Educational content only. Not investment advice or a recommendation to trade.
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