Definition
What is Position sizing?
Position sizing is choosing the size of each trade so that, if the stop loss is hit, you lose a fixed, planned amount of the account.
The formula is simple: lots = (account × risk %) ÷ (stop distance × value per point per lot).
Sizing is what turns a strategy into something that survives losing streaks. With 0.5% risk per trade, eight losses in a row cost about 4%.
Size every trade the same way; increasing size after losses to “win it back” is the fastest way to breach a limit.
Example
$100,000 account, 0.5% risk = $500. Gold stop of $5 per ounce with 100 oz per lot ($500 per lot): 1.00 lot.
At a prop firm
On an Axora Funded 2-Step, a 4% daily limit means 0.5% risk per trade leaves room for eight full losses in one day.
Frequently asked questions
How much should I risk per trade?
Most funded traders risk 0.25–1% of the account per trade.
Is there a calculator?
Yes, Axora Funded has a free lot size calculator and a drawdown calculator.