Position sizing with stop-losses

Gather the inputs before opening the ticket

You need the intended entry, the price that invalidates the idea, the instrument's value per point or tick, and the account currency. Add minimum volume and volume increments. A standard lot, an index unit and a futures contract are not interchangeable, so never carry a size calculation from one symbol to another without checking its specification.

Then choose a dollar risk budget that fits the account's remaining daily and overall room and your tested plan. The budget should include a buffer for costs and execution variation. The account's simulated size is only one reference; a drawdown or several existing positions can make the same nominal percentage unsuitable today.

Calculate a simple example, then add costs

The basic formula is units = risk budget / (stop distance × value per point). Keep the denominator together: a 25-point distance multiplied by a hypothetical $4 per point gives $100 of price risk per unit. A $300 budget therefore permits three units before costs, assuming the instrument supports that increment.

If estimated round-trip charges add $5 per unit, the expected amount becomes $105 per unit. Three units would use $315, above the $300 budget. At whole-unit increments, two units fit the simplified calculation. These figures are invented arithmetic inputs, not MultiFunded contract values or suggested position sizes.

Round volume down and verify the order

A calculated 1.87 units cannot be submitted if the platform permits only whole units. Rounding up changes the intended risk; rounding down respects the budget more closely. For instruments with fractional increments, verify the permitted step and calculate the actual risk of the submitted volume again.

Check buy versus sell, order type and price decimals before confirmation. A decimal error in volume or a stop entered on the wrong side can overwhelm a careful formula. Save the calculation in the journal next to the ticket identifier so that a later execution review can compare the intended order with the order actually sent.

Treat stop risk as planned risk

A stop-loss instruction does not promise execution at the selected price. Gaps, spread changes and available liquidity can alter the fill. The difference is especially relevant when the account is near a contractual floor. Leave a margin and compare actual execution with the assumptions used in the sizing model.

A wider stop is not automatically safer or riskier in dollar terms if volume adjusts appropriately. It does change the price path being tolerated and may change the strategy's outcomes. Test the entry and exit logic as a complete method rather than moving the stop after entry merely to avoid realising a loss.

Add the order to the account, not to an empty page

The new ticket's risk must be combined with existing positions and pending orders that could trigger. Several trades can share a market driver even on different symbols. Map a scenario in which those positions lose together, then compare the combined loss with the account's current room and personal session stop.

After partial closes or stop changes, update the calculation instead of relying on the original ticket. Reducing risk on one position does not automatically justify increasing another. A repeatable sizing process gives you a consistent record to review; it cannot eliminate loss, slippage or the need to respect the full programme rules.

Key takeaways

• Choose the invalidation level and risk budget before volume.
• Use actual point values, costs and permitted volume increments.
• Round down where needed and include all other open exposure.

Sources and rule check

MultiFunded-specific details were checked against the programme configuration and rulebook on 23 October 2026. Read the conditions attached to your own account before trading; educational examples do not predict results.

• MultiFunded programme comparison — current phase targets and programme limits.
• MultiFunded trading rules and Terms — definitions, restrictions and reward conditions.
• CME Group: Proper Position Size — general education on choosing a logical stop and converting it into position size; the examples here are independently constructed.