Hey guys been messing around with a demo account for two days now. My question is if I setup a long trade and it goes the other way, (or vice versa), can you let it ride for days or however long until it eventually comes back? Is there some time limit brokers give you before they close on you or something?
My beginner scenario.
Start an account with $200 bucks, place a trade and it starts going the other way showing a profit of around $-500 and it stays down for awhile. What would cause this to close other than myself? No stop loss set so it just goes till I close it.
Thanks sorry if this is confusing, I barely know enough to even ask a proper question.
If you don’t use any leverage it will just float around forever until your broker goes under, the currency disappears, an interest rate devours it over a century or two or the world ends with the zombie apocalypse… whichever comes first.
I wanted to add this sense my question probably sounds retarded. If you open an account with $200, how far negative would a broker let it go before they would close on you…if they even do that.
No this is dead wrong. you will be forced to flatten all your positions , margin called. when your account no longer has enough funds to cover the margin. Whatever that may be, if its say 50 bucks in this example. once you lose 150.01 you are MC’d. Can you go negative, yes its possible. If price gaps largely in the other direction before your broker flattens your postion he basically goes to market. you will have to pay the kitty, what ever negative amount that is. although this is unlikely its a possibility. If you maintain a negative balance after being MCd your going to pay up. but most brokers are going to protect themselves by flattening you as soon as they can and making sure you dont go negative. There is no time limit on trades imposed by brokers, if they go bankrupt thats a whole nother problem you have with playing OTC markets.