I am new to any kind of trading and have a question about loseing. If you use leverage at 100:1 on a standard lot so the deposit is $1000. Is it possible to lose the whole deposit and the $99,000 u borrowed ? Would you have to pay that 99 back? I assume the answer is no but have to make sure.
Each broker will have their own rules for losses larger then your account value, in practice you would get a margin call before your account got to zero, and if you did not add money to your account your broker would close your positions for you. You would have to be pretty reckless with your account to get to a negative number.
99.99% of the time you will never lose more than your own deposit. Brokers are not in the business of losing their own money, so you will get a margin call before you dip into the negatives almost always.
I have never experienced it myself, but I have heard of the odd 1-2 individuals who have claimed did end up receiving an invoice from their broker because they hit a margin call during extremely volatile times and the spread + slippage could not be covered by the balance remaining on the account. Keep your leverage low and you should be just fine.
In theory yes.
In the real world I agree with the other posters above me, with the exception that it has happened in the past and can happen again. Some time ago there were problems with CHF and traders lost their accounts and some brokers went broke. In some cases the retail traders were relieved and didn’t had to pay their negative balance, but the non-retail traders had to.
These retail traders may not be so lucky next time, so you always must be aware that you can lose more than you invested. But it is a rare occasion and probably comparable with being struck by lightening, that also doesn’t keep you indoors at all times.