← Glossary

Position size

Position size is your dollar risk budget divided by risk per share, rounded down to a whole share so actual risk never exceeds the budget. A tighter stop means a smaller R, so more shares fit in the same budget; a wider stop means fewer shares. This relationship — size falling as the stop widens — is the core tradeoff a plan makes visible.

Shares = floor(DollarRisk / R)

This explains what position size measures. It isn't investment advice — see the disclaimer.