Account $10,000, risk 1% per trade, stop 5% below entry. Position size is: $100 $500 $2,000 $10,000

Account $20,000, risk 2% per trade, stop distance 4% below entry. Position size is: $4,000 $8,000 $10,000 $20,000

Account $5,000, risk 1% per trade, stop 10% below entry. Position size is: $50 $250 $500 $1,000

Keeping risk % and account size constant, if you widen your stop distance, your position size should: Increase Decrease Stay the same Become irrelevant

Why do traders size positions based on stop distance rather than using a fixed dollar amount for every trade? It guarantees profits on every trade It keeps the dollar risk consistent regardless of how far the stop is from entry It removes the need for a stop-loss entirely It maximizes position size on every trade

Account $8,000, risk 0.5% per trade, entry at $50, stop at $47. How many tokens should you buy? ~13 tokens ~27 tokens ~40 tokens ~80 tokens

Position sizing: quiz