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Risk
Position Sizing
Determining how much capital per trade/asset; risk management core
Definition
Position sizing determines capital allocation per investment based on risk tolerance. Methods include fixed percentage, equal weighting, or Kelly Criterion. Proper sizing prevents catastrophic losses and maximizes risk-adjusted returns.
Related Topics
#risk management
#capital allocation
#portfolio construction
#risk tolerance
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Category: Risk
Risk management involves identifying, assessing, and controlling potential losses in investment portfolios.
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