The amount of money you're willing to risk on a trade relative to your total capital.

The percentage of your capital that is at risk in this trade.

The price point at which you plan to initiate a buy position.

The price level set to exit a trade to limit losses if the market moves against you.

The quantity or size of the asset being traded in this position.

A position taken expecting the asset's price to increase over time.

The risk associated with the strike price in options trading, where the price must be met for profitability.