Definition
Calculating trade size from the percentage you are willing to risk and the stop distance.
Example
Risking 1% of $10,000 with a 20-pip stop gives 0.5 lot of EURUSD.
Related terms
Forex glossary
Calculating trade size from the percentage you are willing to risk and the stop distance.
Risking 1% of $10,000 with a 20-pip stop gives 0.5 lot of EURUSD.