Glossary · Risk & money management
Overleveraging
Opening positions too large for the account, so a normal move against you causes a heavy loss or a margin call.
Related terms
Leverage
Borrowed exposure that lets you control a position larger than…
Margin call
A warning, or a block on new trades, when your margin level falls…
Backtesting
Testing a strategy on historical data to see how it would have…
Black swan
A rare, unpredictable event with extreme market impact, such as…
Correlation
A measure from −1 to +1 of how closely two pairs move together.…
Drawdown
The fall from an account’s peak to its lowest point before a new…