What is confirmed losing reference volume?

Explains reference volume.

When the original position or combined position is fully closed, if the cumulative realised result is a loss, its cumulative closed volume becomes the confirmed losing reference volume.

If the cumulative realised result is zero or profitable, no losing reference volume is created and the sequence ends. Only a new position or group of positions opened after the losing reference position or combined position has closed is assessed as a potential recovery position.

Related Terms: Section 7.13.2