---
title: "Position size - Meaning & GFN's Figure - Get Funded Now"
description: "How many lots a trade is placed in. It is calculated from the dollar amount being risked and the stop distance, not chosen first - which is the reverse…"
url: "https://getfundednow.com/glossary/position-size"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/position-size"
  pt-BR: "https://getfundednow.com/pt-br/glossary/position-size"
  fr: "https://getfundednow.com/fr/glossary/position-size"
  it: "https://getfundednow.com/it/glossary/position-size"
  de: "https://getfundednow.com/de/glossary/position-size"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Trading mechanics

# Position size

How many lots a trade is placed in. It is calculated from the dollar amount being risked and the stop distance, not chosen first - which is the reverse of how most traders approach it.

GFN’s figure

Sized against GFN's daily loss limits, a $100,000 account risking 0.5% per trade risks $500 - one tenth of the 5% daily allowance on the 1 Step, or one sixth of the 3% allowance on Instant.

- **Instant Daily allowance on $100,000**: $3,000
- **1 Step and 2 Step Daily allowance on $100,000**: $5,000
- **0.5% risk per trade**: $500

In detail

## Position size, explained

The calculation is fixed: risk in dollars, divided by stop distance in pips, divided by the value of a pip per lot. Change the stop and the size changes; keep the size and the risk changes instead.

On a prop account the risk figure has to be set against the daily loss limit rather than against the account balance, because the daily limit is the constraint that actually binds.

[The rule in full →](https://getfundednow.com/rules/margin-and-lot-size) · [Rules handbook](https://getfundednow.com/rules) · [More trading mechanics](https://getfundednow.com/glossary/category/mechanics)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Lot](https://getfundednow.com/glossary/lot) - The unit position size is measured in. One standard forex lot is 100,000 units of the base currency; mini and micro lots are one tenth and one hundredth of that.
- [Stop loss](https://getfundednow.com/glossary/stop-loss) - A resting order that closes a losing position at a predetermined level. It is the mechanism that turns a risk-per-trade figure into an actual limit rather than an intention.
- [Fixed fractional](https://getfundednow.com/glossary/fixed-fractional) - Risking a constant percentage of equity on every trade, so position size falls after losses and rises after gains. It is the standard position-sizing model and the one most prop rules assume.
- [Daily loss limit](https://getfundednow.com/glossary/daily-loss-limit) - The most an account may lose in one trading day before it breaches. Calculated as a percentage of the previous day's closing level, it resets at a fixed time each day and is the rule that ends most evaluations.
- [Risk-reward ratio](https://getfundednow.com/glossary/risk-reward-ratio) - The size of a trade's target relative to its stop, expressed as a ratio. A 2:1 trade risks one unit to make two, which sets the win rate the strategy needs in order to be profitable.

Also governed by [/rules/margin-and-lot-size](https://getfundednow.com/rules/margin-and-lot-size)

[Standard lot](https://getfundednow.com/glossary/standard-lot) · [Margin](https://getfundednow.com/glossary/margin) · [Free margin](https://getfundednow.com/glossary/free-margin)

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Source: https://getfundednow.com/glossary/position-size
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt