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What is considered over-leveraging?
What is considered over-leveraging?
Updated over 3 months ago

Over-leveraging occurs when excessive leverage reduces the account's Margin Level to 150% or lower. This practice significantly heightens the risk of substantial losses, particularly during market volatility.

Over-leveraging typically involves taking on a trade or multiple positions on a single symbol or instrument that exceeds the leverage limits set by SFX Funded. This excessive risk can push the account into a Margin Call.

Engaging in over-leveraging can lead to rapid account depletion and is generally prohibited to ensure responsible risk management.

Violating this rule may lead to the deduction of profits, reset of an evaluation or issuance of a soft or hard breach subject to SFX Funded.

To help manage your trades more effectively and prevent over-leveraging, refer to our guide: How do I calculate my maximum lot size to avoid over-leveraging?

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