Definition
Financial exposure exceeding the capital provided to support the position.
What you need to know
The same movement in the asset’s price can produce a larger change relative to the capital allocated. Leverage magnifies losses as well as gains. In futures, losses may exceed the initial margin; for retail CFDs in the UK, account-balance protection exists under FCA rules. Neither the margin requirement nor these examples establish the maximum loss or protections for another account.
This information is for learning and comparison, not investment advice. Verify product details and eligibility conditions against the current source.
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