When a venue force-closes a leveraged position because the margin left is too small. It can happen before your stop is reached.
How traders use it: Check that the liquidation price sits well beyond the stop.
Common mistake: Not checking it at all.
Related: Leverage · Stop-loss (stop)
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.