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Position size
How much goes into a trade, chosen so that hitting the stop costs an amount you are prepared to lose.
If you will risk R1,000 on a trade and the stop is R5 below the entry, the position is 200 shares. The stop sets the size, not the other way round.
More terms
- Price to earnings (P/E)The share price divided by the profit per share: how many years of today’s profit you pay for.
- Dividend yieldThe dividends paid over the last year as a percentage of today’s share price.
- Ex-dividend dateThe first day a share trades without its next dividend.
- Payout ratioThe share of its profit a company pays out as dividends.
- Market value (market capitalisation)The share price times the number of shares: what the market says the whole company is worth.
- IndexOne number that tracks a basket of shares, so you can see how a whole market or sector is doing.
- Every term ↗
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