Risk
What is Martingale?
By the verify.trading team · Last reviewed · How we write
Martingale is a betting approach that doubles the position size after each loss. It risks a very large loss and can breach margin or drawdown limits quickly.
Key points
- Doubling size after a loss.
- Exponential risk during a losing run.
- Often banned by prop firms.
Martingale explained
The idea is that one win recovers all the losses, but a run of losses grows the position size exponentially, and account size and broker limits are finite. Many prop firms prohibit it explicitly, and it conflicts with basic position sizing.
Related terms
Related tools and guides
General education, not investment advice. Regulatory limits and prop firm rules change; check the official source. verify.trading provides records and analysis, not investment advice; trading involves significant risk of loss. Absence of a regulatory action is not an endorsement, and absence from a regulator's list is not proof of authorisation.