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."

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