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GlossaryStrategy & risk

Chasing losses

Continuing or increasing activity mainly to recover earlier losses rather than following a predefined limit.

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Direct answer

Where this term appears

This term may appear in a strategy article, demo journal, performance report, calculator, account history, or risk warning. State the assumptions and sample period alongside the number.

Use the definition above together with the exact value, condition, timestamp, account, product, or payment context shown by the broker.

Do not confuse

How Chasing losses differs from related terms

Chasing losses is often researched beside Recovery time and Deposit limit and Inactivity fee. The labels can appear in the same workflow, but they do not describe the same field or condition.

01
Recovery time

The time taken to restore normal service after an incident. It measures operational response rather than incident count alone.

02
Deposit limit

The minimum or maximum amount accepted through a specific payment method, currency, region, or account status.

03
Inactivity fee

A fee charged after an account has had no qualifying activity for a stated period, based on the broker's timing, amount, and deduction rules.

Practical use

Read the number on one consistent basis

Chasing losses means continuing or increasing activity mainly to recover earlier losses rather than following a predefined limit. A numeric field is useful only when its unit, numerator, denominator, observation period, account scope, and exclusions are stated. Two brokers can display the same number while measuring different things.

A neutral example

Record the displayed value together with the asset or payment method, account tier, currency, product, timestamp, and condition. Recalculate the figure from the underlying amounts where possible.

01
Definition

The broker's formula, unit, scope, and included result states.

02
Observation

A dated screen or transaction record showing the value in its real context.

03
Normalization

The converted value on the same net, gross, per-trade, per-day, or per-method basis used for competitors.

In a broker review

How to use Chasing losses in a comparison

In a broker review, do not read Chasing losses in isolation. Match the broker's own definition to the relevant contract, account, pricing, payment, or platform screen and record the condition that changes its meaning.

Comparison context

Why it matters when comparing brokers

How to use this term

Risk and performance terms should be used to evaluate assumptions, sample quality, stake exposure, and loss capacity. They do not turn a broker feature or historical result into a trading signal.

What it does not prove

Historical or simulated performance does not establish a future edge. Small samples, changing payouts, selection bias, and stake escalation can make results look stronger than they are.

Broker checklist

What to verify

Check these points on the broker's product screen, account flow, terms, or help pages.

01
Assumptions

State payout, win probability, refund, stake rule, fees, and excluded outcomes.

02
Sample quality

Check period, sample size, missing trades, account mode, and selection method.

03
Downside

Measure loss streaks, drawdown, risk of ruin, and the effect of stake increases.

04
Use boundary

Keep educational risk analysis separate from entry timing, direction, or guaranteed-return claims.

Quick answers

Common questions

Short answers for users comparing binary options brokers and account conditions.

What is Chasing losses commonly compared with?

Chasing losses is commonly compared with Recovery time. Recovery time means: The time taken to restore normal service after an incident. It measures operational response rather than incident count alone.

Why does this term matter when comparing brokers?

Risk and performance terms should be used to evaluate assumptions, sample quality, stake exposure, and loss capacity. They do not turn a broker feature or historical result into a trading signal.

What should I check when comparing this feature?

Historical or simulated performance does not establish a future edge. Small samples, changing payouts, selection bias, and stake escalation can make results look stronger than they are. Check the broker's definition, applicable terms, and account or product screen before relying on the label.