I’ve got a question, I setup a demo acct and made a decent chunk of change on it and wanted to move to a real acct, but the disclaimer of the broker I was looking at said something about how trading with a leveraged acct can bring losses that are more than their margin deposit. Does that mean that i could potentially lose more money that I put in, I’ve been thinking about starting with $500 and losing that wouldn’t hurt to badly but I would hate to wake up and find that a trade went bad and that I’d be thousands in debt. Is that something thats a posibility or would the most I could lose be the $500
This is a standard disclaimer from all Brokers, usually when your losses are nearing your account balance you will receive a margin call.
But of course you will never trade without a stop loss anyway, will you?, so this question is academic.
You’d never believe…
Why would anyone trade without a stop loss !?
Best Regards,
Matt Jones .
Very unlikely as as Daisychainbasic points out, they’d close the position as soon as you are reaching your margin amount
Unlikely, but they put out it as a disclaimer as it is possible to run a negative balance in times of extreme volatility. Note though, some brokers promise a no negative balance policy so you can never lose more than your account.