← Glossary

Max risk per trade

Max risk per trade caps dollar risk on any one position as a percentage of account equity — it's the input to the dollar-risk formula, and the figure that determines how many shares a plan sizes to. Published risk-management writing commonly discusses a range of roughly 0.5–2% per trade; this product does not set or suggest a value, it only applies whatever percentage you configure.

This explains what max risk per trade measures. It isn't investment advice — see the disclaimer.