Maximum exposure: how many open positions at once?
Position count is a risk dimension people forget: six open trades means six chances to make mistakes, six swaps and a margin picture that changes by the hour. A cap on positions is a cap on chaos.
What's your limit?
- the maximum simultaneous positions you run
- how the limit changes in high-volatility weeks
- the moment too many positions taught you the rule
The margin guide explains what multiple positions do to your margin level.
Background: Leverage and margin explained: margin calls, stop-outs and how losses grow
Leverage lets you control a large position with a small deposit. It magnifies losses exactly as much as gains, and it is behind most blown trading accounts.
What does 30:1 leverage mean?
You can control a position 30 times larger than your margin deposit. $1,000 of margin opens a $30,000 position, and gains and losses are calculated on the full $30,000.
What is a margin call?
A warning from your broker that losses have reduced your margin level to a set threshold. If it keeps falling, the broker starts closing positions automatically, which is called a stop-out.
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