// TRADING TERMINOLOGY

What is Over-Leveraging?

The practice of using too much borrowed capital relative to your account size.

In-Depth Explanation

Over-leveraging is the #1 reason why retail traders blow their accounts. It makes small price moves have a devastating impact on account equity.

"The trader blew their account in one day due to extreme over-leveraging."

Borrowed capital from your broker that lets you control a position larger than your deposit — amplifying both profits and losses equally.

Margin is the portion of your account balance that the broker "locks away" as collateral to keep your leveraged position open.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

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Knowing the terms is just the start. Learning how to apply them is where the edge is found.