Post
Topic
Board Trading Discussion
Re: Is this also your strategy to avoid hitting your stop loss early?
by
Beparanf
on 17/04/2022, 11:50:49 UTC
...Is this also your strategy?

The stop loss cannot depend on the size of the leverage. But the leverage is directly related to the order liquidation price. Accordingly, the higher the leverage, the closer the liquidation level is and the higher the chance of losing your deposit.

This is true. If you just open another position to increase the size of your position, the liquidation price will still gonna be the same but only the entry price will adjust base on the average of all the price entry that he made in proportion to the size. Increasing the margin is what makes the liquidity price create space but it will not gonna change the initial size of the investment yet the additional margin will be lose once the new liquidation price will hit.