Stop loss

Hello - jase newbie-
I would like to know if you go long on a trade and you place a stop loss.
Then lets say the trade goes south on you to the point were your pip
lost has wiped out your lots traded but you stop loss was not reached
are you liable for the stop loss money if it is eventually reached?

You might want to get familiar with the term “margin call”, because that is what will happen.

While we’re at it, if your margin is emptied before your stop is hit, you’re “over-leveraged”.

You might want to look into “money management” a bit as well.

your broker does not go on IOU notes…

He will cut ur position for you before it reaches your SL because now you got no deposit to guarantee your position so to speak.

Its called a margin call.

Ok , as a result of the margin call the trade is closed and I don’t owe the broker
any thing?
thanks for you reply
jase

you don’t “owe” anything, but your account will be deducted the margin.