Skip to content
Trading basics

What is risk per trade?

The fixed slice of your account you allow any single position to cost you.

Definition

The fixed slice of your account you allow any single position to cost you.

Risk per trade, explained

Most traders settle on a small, constant fraction — commonly somewhere between 0.5% and 2% of the account — and hold it steady whether they feel certain or not. Constant risk is what makes a losing streak survivable rather than final.

A worked example

On a $25,000 account at 1%, every position risks $250 — win or lose, sure or unsure.

Where risk per trade shows up in a journal

A trading journal is where this stops being a definition and becomes your own number. sizeforzero computes it from the trades you import or log, alongside the rest of your analytics vocabulary, and every figure in the app carries an (i) that explains it in the same plain English you just read.

Keep reading