← Glossary
Position cost
Position cost is shares multiplied by entry price — the cash the position ties up, separate from dollar risk, which is only what you'd lose if the stop is hit. A position can have a large cost and a small dollar risk on a tight stop, or the reverse on a wide stop, so the two numbers are read together rather than interchangeably.
This explains what position cost measures. It isn't investment advice — see the disclaimer.