Real-world example
You have ₹1 Lakh. You decide to put only ₹5,000 into a risky small-cap stock. That ₹5,000 is your 'position size'.
Knowledge base
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Position Sizing
Deciding exactly how much money to put into a single trade or investment.
LiveSoonExplain like I’m 5
- Most blowups happen because someone bet too much on one trade.
- Good position sizing ensures that no single loss can wipe you out.
- A common rule is never to risk more than 1% or 2% of your capital on one trade.
See it in PortoAI
Check if any position has grown too large.