Entry
The price at which you open a position.
Also called: entry price · open a position
In plain language
Your entry is the reference point for everything else in the trade. Risk is measured from it, reward is measured from it, and your position size is derived from the distance between it and your stop.
The entry you plan and the entry you get are different things. A market order fills at the ask or bid; a limit order fills at your price or not at all.
A good entry is not the lowest price of the move. It is a price where your invalidation level is close enough that the trade can be sized properly.
Why it matters
Entry quality controls stop distance, and stop distance controls position size. A tighter, better-defined entry lets you take the same dollar risk with a larger, more responsive position.
Common mistakes
- Chasing an entry after price has already run, which widens the stop and shrinks the position.
- Using the chart’s last price as the entry when the spread is wide.
- Entering before defining where the idea would be proven wrong.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
The price at which you close a position, whether at a profit or a loss.
A predefined exit that closes a losing trade before the loss becomes serious.
A predefined price where a winning trade is closed automatically.
The amount of an asset you buy or sell in a single trade.
An order to buy or sell at a specified price or better — it may not fill at all.