What is Forex Position Sizing?

This is a vital part of your trading system that helps you keep your risk per trade as small as possible.

With this, even if you’re on a losing streak, you can continue trading to reap the positive edge that comes with a large sample of trades.

Position sizing helps you determine:

• How many contracts should you long or short for any particular trade?
• What is your risk per trade and the overall risk of your portfolio?
• What returns can you expect for your portfolio?