Realised-Loss Recovery Over-Sizing may be flagged where, after a position or group of positions on an instrument closes with a cumulative realised loss, the trader opens a new position or group of positions on the same instrument and in the same direction with cumulative volume of at least twice the confirmed losing reference volume.
Positions on the same instrument and in the same direction that form part of the same trading sequence are assessed cumulatively.
This is a Risk Review trigger, not an automatic Strike, Conditional Strike, Formal Warning, or automatic Reward Payment reduction.
Related Terms: Section 7.13
