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Position size explained.

The amount of an asset or contract exposure held. Its relationship to capital, correlated holdings, leverage, and an adverse scenario helps determine its effect on an account.

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Position size

The amount of an asset or contract exposure held. Its relationship to capital, correlated holdings, leverage, and an adverse scenario helps determine its effect on an account.

Example: Fifty shares are a different exposure from five shares of the same stock.

Watch for: Choosing size only from how strongly you feel about an idea.

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