Position sizing is the part of the plan you can write down first.

01 / The idea

What position sizing means

Position size is the quantity of a currency pair you plan to trade, often written as units or lots. It works together with the distance to your planned exit. The same size can create a different potential loss when the stop distance changes; the same stop distance can create a different potential loss when the size changes.

A simple planning relationship is price-move loss ≈ stop distance × position’s pip or point value. It is only an estimate: check the broker’s current contract specifications and account-currency conversion instead of assuming a pip value.

02 / Before entry

Four inputs make exposure easier to see

03 / Hypothetical example

See the estimate without treating it as a rule

The figures below are deliberately hypothetical and are not a recommendation for your account, currency pair, position size, stop, or risk limit. They simply show how the pieces can be written down before entry.

04 / A short pre-trade check

Questions worth answering before entry

• Have I written the pair, direction, entry, planned stop, and position size?
• Have I checked the current pip or point value, costs, margin rules, and account-currency conversion?
• What could change if the stop slips, a gap occurs, liquidity falls, or the market moves quickly?
• Could another open position move in a similar way and add to the same exposure?
• What information is still unknown, and what would make me reduce, postpone, or skip the trade under my own plan?