← Glossary
Max position size
Max position size caps position cost — shares times entry — as a percentage of account equity, independent of the risk-per-trade cap. It exists because a position can pass the risk cap on a wide stop while still tying up an outsized share of the account in one name; this limit reduces share count further when it binds tighter than the risk cap.
This explains what max position size measures. It isn't investment advice — see the disclaimer.