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Position size

Position size is how much of an instrument a trade holds, such as 0.209 BTC. In this course it comes from the stop: the money you risk divided by the stop distance.

With a $5,000 account and 1% risk, you risk $50. If the stop is $239 away (10% of a daily ATR of $2,389), the size is $50 ÷ $239 = 0.209 BTC, so a hit stop loses exactly $50. Leverage does not change the size; it only changes how much margin you put up.

Learn more: the most common mistakes new traders make and the risk formula.