b9_1155what is risk amount?
the money you are willing to lose on one trade if the stop fills as planned (account × risk %).
a common convention in trading education is 0.5–1% of the account per trade. that is a convention, not a recommendation.
related words
- position sizing deciding how big a trade is, based on how much you are willing to lose if it's wrong.
- stop-loss (stop) a planned exit price where a losing trade is closed.
- stop distance the distance, in %, from the entry price to the stop.
free reading
part of the topic risk: free articles, more words and the guide.
checked . education, not advice. found a mistake? see corrections.