# Overview

Trading parameters refer to the settings and rules used to make trades.

<table><thead><tr><th width="145.5"></th><th></th></tr></thead><tbody><tr><td>Position Size</td><td>The amount of money that a trader allocates to a particular trade.</td></tr><tr><td>Stop Loss</td><td>A predefined price level at which a trade will be automatically closed to limit the loss.</td></tr><tr><td>Take Profit</td><td>A predefined price level at which a trade will be automatically closed to secure a profit.</td></tr><tr><td>Entry Price</td><td>The price at which a trader enters a position.</td></tr><tr><td>Exit Price</td><td>The price at which a trader exits a position.</td></tr><tr><td>Leverage</td><td>A borrowing method that allows a trader to take larger positions with a smaller amount of capital.</td></tr><tr><td>Margin</td><td>The amount of money that a trader is required to deposit to open a position.</td></tr><tr><td>Risk/Reward Ratio</td><td>The ratio between the potential profit and the potential loss of a trade.</td></tr><tr><td>Time Frame</td><td>The length of time that a trader intends to hold a position.</td></tr></tbody></table>