Hi guys I’m pretty new to baby pips and trading before carrying on I just want to be sure of the risks involved and was wondering could anybody clear this up for me.
If I’m stopped out as my trade has gone terribly wrong can my balance go into negative equity ie… I would actually owe the broker money or would my trade just be stopped out and I would be left with basically zero in my account.
Thanks for any help.
welcome to baby pips. risk management is really a challenging issue. to maintain a perfect risk management need a long time experience with great level of patience.
Hi,
It will depend on the contract terms of your broker. Never open a live trading account with a broker until you have read and understood the terms and conditions. Having said that, there is no need to open a live account. You can open a dummy trading account and learn your Forex trading without putting real money at risk. It is like having monopoly money.
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No misstep you make will make you owe the broker money
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Nowadays, brokers will stop you out when you reach the margin amount - which is where you don’t have enough money to continue.
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