Holding a position larger than the cash posted as margin. It changes the margin needed and the liquidation price, not the loss at your stop. Losses can exceed the money deposited.
How traders use it: Size from the stop first; leverage only determines margin.
Common mistake: Choosing leverage first and letting it decide the position size.
Related: Liquidation · Position size
Used in: Position sizing from first principles, Stops, slippage, and gaps: why real losses run larger
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.