Over-Leverage and Compounding Losses

This lesson is for enrolled learners

The concept Over-leverage is using more leverage than your stop-loss distance and risk budget actually require — not leverage above some universal "safe number," but leverage that is mathematically inconsistent with your own position-sizing formula from Module 3. Recall from lesson-position-calc that leverage only determines how much margin you post for a given notional; your risk (dollar loss at your……

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