will i lose my money?

[piprage]

errmmm okay, i started trading forex with a demo account about a few days ago, and i must say that the fact that it's a demo account has given me liberty to be carefree. however, yesterday, i placed an order to sell EUR/USD with the expectation that USD would make a rally, and actually it did, but not after my available margin hit zero.

my question: in a live account when trading with real money, would i have lost all my money on that trade as i did not put a stop loss order? even with the expectation that the USD would rally at some point. but if my margin available hits zero before that rally occurs, does that mean that i would have lost all my money?

when the USD rallied my margin started increasing again until i closed the trade and made some profit. is this the way it actually works assuming it's a real money account?

please, please, pretty please, i would appreciate if somebody can help me out here as i would want to know if i could take such risks when eventually i start trading with real money. thanks in advance y'all

[n_aftab]

if your margin hits 0 then most brokers will close the position for you, some will try to contact you first to reduce the position size.

N

[tonymand]

Originally Posted by piprage

errmmm okay, i started trading forex with a demo account about a few days ago, and i must say that the fact that it's a demo account has given me liberty to be carefree. however, yesterday, i placed an order to sell EUR/USD with the expectation that USD would make a rally, and actually it did, but not after my available margin hit zero.

my question: in a live account when trading with real money, would i have lost all my money on that trade as i did not put a stop loss order? even with the expectation that the USD would rally at some point. but if my margin available hits zero before that rally occurs, does that mean that i would have lost all my money?

when the USD rallied my margin started increasing again until i closed the trade and made some profit. is this the way it actually works assuming it's a real money account?

please, please, pretty please, i would appreciate if somebody can help me out here as i would want to know if i could take such risks when eventually i start trading with real money. thanks in advance y'all

Yes you would have lost all your money and rightly so. Have you not read about money management and the 2% rule. If you have you clearly do not understand it

[icycloud]

develop your own trading system

[rhodytrader]

Everyone seems to have missed what is an important qualifier. He said available margin, not just margin. You can have your available margin drop to zero without getting automatically closed out. It just means you can't open any other positions. So long as you don't go below your required maintainence margin level, you'll be OK - not that this sort of activity is recommended.

[tonymand]

Good point John

[piprage]

okay, thanks guys, i really appreciate y'all, and john thanks especially. i guess i'll have to be more conservative in applying the rules as i was trading massively. probably i was carried away by my still operating a demo account.

still on my novice status, i would want to ask another question, i hope you more accomplished traders don't get too pissed. i started my demo account with a balance of about 100,000, and now it's about +4,529.32, that's a total of about 104,529.32. what would that translate to in real money terms?

[rhodytrader]

Originally Posted by piprage

still on my novice status, i would want to ask another question, i hope you more accomplished traders don't get too pissed. i started my demo account with a balance of about 100,000, and now it's about +4,529.32, that's a total of about 104,529.32. what would that translate to in real money terms?

I'm not entirely sure how to answer this. If you did the exact trade(s) the exact same way in real trading then it would provide the exact same result.

When people say its different in real trading they mean the pressures tend to alter the way one trades.

[piprage]

okay, thanksalot. i think i'm gonna enjoy trading. can't wait to have a live account, but first let me get the hang of the demo thingy. thanks john

[piprage]

hello there, for example now. if someone has decided to enter a trade, how long can he remain in that position before closing the trade? as in can i buy today and sell tomorrow or like two days after i entered the position whether long or short?

thanks in advance. . .