Wire is sized by the American Wire Gauge (AWG) system. Your installation of conductors will depend on a few factors. The gauge of the wire, wire capacity, and what the wire will feed should all be considered.
Wire types, like copper and aluminum, also determine how much ampacity the wiring can carry. And don't forget about the distance. Long distance runs of wire can have a voltage drop, so that needs to be considered before an electrical job is started and the the wire is pulled.
If you're like most people, pretty much, all wire looks the same. I cringe when I hear someone say, "This wire looks big enough for what I'm running." Really? How does that qualify the wire size? It doesn't! Please, please don't choose your wire size that way. I don't want to see your house burn down. Instead, try looking over these great tips.
Source: http://electrical.about.com/b/2012/09/27/wire-gauge-and-wiring-uses.htm
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