What would happen if equity reached zero?

If I have a balance of 1000 euros and my open negative operations make my equity reach zero euros, what would happen?

Your broker will close your position and you will have lost your 1000Eur.

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As @tommor says.

(You won’t even get as far as zero: they’ll almost certainly close most if not all of your trades down before that, because of margin requirements.)

Reading the free Babypips course would help you very much with several of your recent questions:

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This true. I just gave a quick simple answer.

Unusually for me…

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If your equity drops to zero, your broker will likely close your open positions to prevent further losses, leaving your account balance at zero.

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Some brokers like exness, tickmill, HFM, offer negative balance protection which basically means you can’t lose more that you have. Consult with your broker to know if they offer this feature. However in the 99% of cases your position will be closed by stop out with some money left in your account, so nothing to worry about

How to prevent equity from reaching zero using stop loss?

The basic answer is you use the chart to find the price level at which price action tells you that what you thought was probably going to happen is now probably going to not happen. That’s where your stop-loss should be. When you open the trade you calculate the difference between the entry price and the stop-loss price, and you adjust the size of the position you are about to open so that if the stop-loss is hit, you will only lose maximum 2% of your trading account capital.

If so happens, your broker will close your position and won’t let you open any more trades.

all three of these brokers are the worst brokers that anyone can ever use, exness is 1/10 and the two others are 0/10 i am now trying so hard to keep my language polite about these scamming useless brokers

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Thanks, @FranziskaShultz , you’re 100% right. :+1:

You’re also doing the forum’s members a big and important favour by pointing this out. :sunglasses:

Unfortunately, those three horrible “brokers” all pay people a little, by the post, for favourable forum mentions in any context at all.

It’s hard for “brokers” as bad as those to get customers other than through fake, incentivized recommendations.

All anyone needs to do, to see this at work, is to use the forum’s search function, and you’ll see that some members here have been doing this in many hundreds of posts, over many years - historically Tickmill and Hotforex, now called HFM; Exness not for so many years - and often mentioning these spontaneously, without “responding” to anything. It’s as artificial as you can get, and blatantly obvious.

A couple of the other trading forums put a stop to this years ago, but here at Babypips it goes on for ever. I see that some former members here were expressing their frustration about it many years ago. It hasn’t improved. :roll_eyes: