™A $250 planned-loss budget and a $3 long stop distance imply 83 whole shares and $249 modeled stop loss, subject to available capital and execution risk.
Risk & Portfolio
Position sizing
Choosing how much capital or exposure to allocate to a trade or investment.
Plain-English context
Put the definition to work.
A planned stop loss is not maximum possible loss; gaps, leverage, costs and capital constraints change the outcome.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — asset allocation and diversification