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


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/2-rule/
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.