How position sizing works
Your position size is decided by two things: the rupee amount you're willing to lose, and the distance between your entry and your stop loss. Divide the first by the second and you have your quantity.
Quantity = (Account × Risk%) ÷ |Entry − Stop|
Notice what this means in practice: a wider stop does not mean more risk. It means a smaller position. The rupee risk stays exactly where you set it.
