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Can I lose more than the fund I deposited?


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In most of the cases a losing position is automatically closed by the brokers system when such situation arises. But, the FX market is quite volatile, if margin level is low over economic news releases, or under other abnormal conditions, the market can rapidly move against you and the system will close open positions at the next best available price which could in losing the whole deposit or even more than that.

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  • 4 weeks later...

Depending on our deposit, leveraging poses risks to the broker. Usually, the broker tries to restrict the leverage to our deposit but often he loses a certain percentage as well, but he could as easily get that back from the spreads. On the other hand, the broker has rules against high leverages on big deposits because this could threaten their own financial strength or reserve.

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Depending on our deposit, leveraging poses risks to the broker. Usually, the broker tries to restrict the leverage to our deposit but often he loses a certain percentage as well, but he could as easily get that back from the spreads. On the other hand, the broker has rules against high leverages on big deposits because this could threaten their own financial strength or reserve.

 

The fact is that brokers always keep their interest on top and

usually you are not allowed to hold the position to

bear bigger losses than the funds you deposited.

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  • 2 weeks later...

we just need to be careful. just use small leverage if you have only small deposit specially if you are not yet good in trading. and use SL . but i don't know if the broker will not allow us to lose more than what we have deposited.

perhaps you mean is to open with a large lot. because even if you make an investment with very little funding at the recommended to use a highly leveraged basis, to reproduce in an order. but not allowed to use the a larg lot ,because it will only spend your money and margin call

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Currently I am using marketiva, well with this broker I don't think that is possible because they will control once your margin is consumed they will close one of your position automatically to prevent them from losing as well. I don't know with other broker since I have not tried it yet.

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In all business both offline and online it is very possible to lose your capital. But you will be consider a success if you gain more than you lose. And like forex which is a volitile market losing money is very easy. But why not learn forex more before venturing into it? That way you will learn and know how to manage your account.

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  • 3 weeks later...

perhaps you mean is to open with a large lot. because even if you make an investment with very little funding at the recommended to use a highly leveraged basis, to reproduce in an order. but not allowed to use the a larg lot ,because it will only spend your money and margin call

 

 

yeah i understand it now. we can't trade a big lot if we don't choose big leverage. so it is the lot that we should avoid using too much. and i use high leverage now of 1:1000. anyways, i don't think it is possible to lose more than what you have deposited. i think our trade will stop automatically if we don't have enough deposit any more to sustain the trade.

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  • 1 month later...

I think that is impossible if we could lose more than we deposited except our account has been filled with free capitals of funds in our balance.

If our account is pure from deposit only, that won't happen to lose more than we got.

i am fully agree with you . it never happen to loss more than we deposit if it not credited account by broker . its rediculous how we loss more than we deposit !! that money which we lossing more than our deposit will pay broker !! never happen.

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@Nikhil

Yeah, we won't pay to broker if our account in minus condition and that is impossible because as I knew in forex broker,

they had rule when is our account could be classified as Margin call. And that is impossible in forex broker if they didn't have

rule to tell that our account is margin call.

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@matiskater

That's really weird statement, off course all traders ever got some losses in trading. We could lose in trading but we won't

lose more than we had in our account for sure. That's what I knew, I don't know if there is person who could lose more than

his balance in trading.

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@Boniez

Oh really? That's so weird because if our fund is lower than zero, who will use it for trading :D If my account in zero amount,

I won't use it, if that is lower than zero it means we must pay for them hahaha... Really funny and impossible.

I will wonder why it could be so, of course I do not want to use that account anymore,,, lol

after all i have many accounts ion instaforex there, so it can handle,,, lol

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@Nikhil

Yes, we could change our account in InstaForex once every twice months, that was good because we could get some accounts

in there if we made good posts everyday in there. I like to use this forum as capital to trade.

same from me i also using now as a capital of this forum where i have 7 referal. anyway the thread is difference and i think it never happen to me that i lose more i deposit and now very careful about that not happen in future too.

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