Risk tolerance concerns both willingness and ability to bear loss. It is not the same as choosing the largest position allowed by leverage.
For an arithmetic example, 1% of a USD10,000 balance is USD100. A position-size estimate also needs a valid stop distance and pip value. Fees, gaps and slippage can change actual loss; a stop is not a guarantee.
Educational information only, not personalised investment advice. Trading involves risk.
risk-management