Overview

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

Position Size

The amount of money that a trader allocates to a particular trade.

Stop Loss

A predefined price level at which a trade will be automatically closed to limit the loss.

Take Profit

A predefined price level at which a trade will be automatically closed to secure a profit.

Entry Price

The price at which a trader enters a position.

Exit Price

The price at which a trader exits a position.

Leverage

A borrowing method that allows a trader to take larger positions with a smaller amount of capital.

Margin

The amount of money that a trader is required to deposit to open a position.

Risk/Reward Ratio

The ratio between the potential profit and the potential loss of a trade.

Time Frame

The length of time that a trader intends to hold a position.

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