2% Rule

Business, Legal & Accounting Glossary

Definition: 2% Rule

2% Rule

Full Definition of 2% Rule

A theory in investment trading whereby the investor should not allocate more than 2 percent of their available funds on a single investment trade. This rule helps investment traders in staying within the boundaries of a trading system as well as helping to reduce the downside risk.

Cite Term

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Page URL
Modern Language Association (MLA):
2% Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 04, 2021 https://payrollheaven.com/define/2-rule/.
Chicago Manual of Style (CMS):
2% Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/2-rule/ (accessed: December 04, 2021).
American Psychological Association (APA):
2% Rule. PayrollHeaven.com. Retrieved December 04, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/2-rule/

Definition Sources

Definitions for 2% Rule are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 13th November, 2021 | 0 Views.