Risk management
The idea
Start with a chosen loss budget, then divide by the loss per unit at the planned stop. The contract specification and account currency matter. Round size down to the allowed increment. The calculation estimates a planned loss before execution risks; it cannot cap losses in every market condition.
A worked example
A USD 50 budget and USD 10 price distance on a 100-ounce gold lot implies 0.05 lots before costs. Doubling the stop distance halves that size.
Try it yourself
Use the gold calculator, double the stop distance, and verify how position size changes.
A mistake to avoid
Moving the stop closer just to permit a larger position.