If you are interested in trading forex, then one thing that you should be aware of is the forex position size. This measure is one of the most important when it comes to determining your chances of success.
In many ways, it can actually be more important than the entry and exit points.
What is the Forex position size?
The position size is the amount that you decide to hold for the trade. Make it to small, and you are assuming very little risk but also stand to take very little reward. Take a position bigger than you can safely handle and you end up with the opposite problem. You are taking on too much risk and if things don’t go your way you could lose your bankroll.
A position size can be described as how many lots you take for a trade, and they can be mini, micro or standard. Your risk can be thought of as trade risk or account risk.
Thinking of your trades in terms of risk can help you to stay practical and focused, and take emotion (greed, or risk-aversion) out of trading. Profes