STOP PRICE
Stop Price is the price at which any stop order—whether a fixed or trailing stop—is executed. It marks the exit point for a trade, ensuring predefined risk or profit-taking thresholds are met.
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Category – Position Sizing
Position sizing refers to determining the appropriate amount of capital to allocate to a single trade or investment. In trading, position sizing is essential for managing risk and controlling exposure. Traders use different methods to calculate position size, often based on factors like account size, stop-loss levels, and risk tolerance. Proper position sizing helps limit potential losses and ensures that no single trade has an outsized impact on the overall portfolio, thus maintaining a balanced risk profile.
