What is Position sizing?

Position sizing is choosing lot size so a full stop-loss hit costs only the dollar amount you planned to risk. The common formula is: dollar risk ÷ (stop-loss pips × pip value per standard lot).

Example: risk $100, 20-pip stop, $10 pip value per standard lot → 0.5 lots. That example matches PipAlert's risk calculator defaults and the pip-values blog.

Consistent position sizing matters more when you follow multiple Channels. Different Signals have different stop distances; sizing keeps account risk stable.