Define a budget
Set a risk limit appropriate to your circumstances and consider the combined exposure of correlated trades. Separate margin requirements from the amount you could lose; margin is not a maximum loss.
Size the position
Account for stop distance, contract size, pip or point value, currency conversion and costs. Our EUR/USD calculator illustrates one specific assumption set and does not calculate every instrument.
Review drawdown
A series of losing trades can materially reduce capital. Set a review threshold, record decisions and avoid increasing exposure simply to recover a loss. Gaps and slippage can exceed a planned stop-based loss.