Forex position size plays a crucial role when it comes to trading and making sure you never overextend your account, or risk more than you should.
This point is often overlooked and not known by many traders. Basically, it refers to the size of a position or the amount that you are going to trade.
It is used to help determine how many units of a security you should trade, which helps control your risks and maximize returns.
By working out your position size, you can make bigger or smaller trades. Every trade will have a different size stop and will also often be in a different market or currency pair which can hugely affect the trade amount you should be entering.