A short (small) dressage arena should be 20 x 40 meters (about 66 feet x 132 feet); a standard (large) dressage arena is 20 x 60 meters (about 66 feet x 198 feet).
The larger arena is used for all upper-level dressage competition, while lower-level tests are often performed in a short arena (although either may be used).
Dressage arenas are marked with letters that indicate where specific parts of the test begin and end, and that describe the dimensions of the area in which a movement is to be performed.
Short (small) areas use the letters AKEHCMBF (use the mnemonic All King Edward's Horses Call Me Blessed Fool) as markers.
The letters A and C indicate the center point of the short sides, with A representing the entrance to the arena. E and H are the center of the long sides. The invisible centerline of the arena is called DXG, with X representing the exact center. These are not typically marked to prevent interference with the test.
Moving in a clockwise direction from A, the endpoints are marked with the letters K, H, M and F, which should be placed 6 meters (19'8") in from the corners along the long sides. When properly laid out, the outer letters will be set clockwise from A as AKEHCMBF.
The letters for the standard (larger) arena are AKVESHCMRBPF with DLXIG representing the centerline from A to C, but not marked. The layout of letters is the same as for the smaller arena, but with the addition of V and S placed midway between the corner and middle letters along the far long side, and R and P placed midway between the corner and middle letters on the near long side.
If you're now thoroughly confused, click the links below to see diagrams of both arenas.
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It depends, really. Some shows have smaller rings and some have bigger ones. I say the higher the level the bigger the arena, but it still depends. You can never really tell.