Hey, I would like to know something. If you deposit 10$ into mt4 and losing a trade by 10$ or more (temporarily), will that blow your account?
Yes, losing all of the money you deposit into your trading account is what we call “blowing your account”. Be careful because in some cases, you can actually lose more than what you deposit.
Research what happened with crude futures just a few weeks ago…
having only 10$ in a trading account is indeed having the quasi-equivalent of a blowed up account
There is a good thread on this
Yes, it will blow your account. You should always have enough free margin in your trading account to trade. When you are left with less of the margin, a margin call triggers your account. You need to maintain your account so that you are not left 0 or negative balance.
In the UK and most of the EU, brokers are prohibited from imposing negative balances on losing clients. So here you can never lose more than you put in.
In practice also, the broker would close any open trade when it gets down to the margin limit, which would never be zero. This is in their interests - as long as you have some money to trade with they keep making money and discourage you from enlisting with a competitor.