Trading size and position size


Trading size and position size are the same concepts or not?

I think that trading size is the distance between the open position and the stop loss and how much this represents in my capital. And the position size is the volume (or lot) of the operation. I’m right?


Thanks very much!

J Henry

They are the same.

This is not correct.

The size of your trade is the size of your position.

The “distance” (in pips) [I]from your [U]entry[/U] to your stop-loss[/I] is your [B]risk in pips[/B]. This risk (in pips) times the relevant pip-value is your [B]risk in dollars[/B] (or whatever your account currency happens to be).

The “distance” [I]from the [U]current price[/U] to your stop-loss[/I] (measured either in pips or dollars) is [B]not[/B] a metric commonly used in forex trading.


Position size can be stated as the [I]notional amount[/I] of your trade — for example, 1 standard lot (100,000 units) of GBP/USD; or as the [I]notional value[/I] of your trade — for example, $141,200, which would be the notional value of 1 standard lot of GBP/USD (at a GBP/USD price of 1.4120).