What do you thing will happen when we get a lose greater than the deposit. Do we have the option to wait till the market bounces back?
By the way is such a situation possible???
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What do you thing will happen when we get a lose greater than the deposit. Do we have the option to wait till the market bounces back?
By the way is such a situation possible???
Logically such situation can come. I heard that whatever we deposited in the account only we will lose. There wont be a situation in which we owe broker money. It is after all too risky. Moreover most of us trade with unverified account. There is no way the brokers are going to get back their money.
Practically i don't think it can happen to anybody. Because as soon as your available margin becomes less than the required margin you get a margin call and all your open orders are closed by the broker. So you can not loose the amount greater than you deposited.
If you had few profitable trades before a loosing order then it may be possible.
Thanks a lot for that reply i was really worried of such a situation. I was determined not to trade until i get an answer for that. I started trading only because i thought that its safe and will lose only my deposit.
Balance = deposit
Equity = balance + bonus(it may 30% or another)
So possible to lose that more than deposit.
It is not good sign.
This forum income will add as a bonus not balance. Have profit for add in balance. If you experience about lose grater than deposit. Please take it as a learn . And learn more for not return this position. It can good experience if can control by Forex education power.
There is no way to lose more then you deposit. That is why there is a margin call which will close all your positions when your equity is 0$.
That's why we are very greatfull for this forum which gives us bonus money to trade. We are stil learning and we don't have to make deposit with out own money.
good luck
I don't thing it can happen. You can trade only using your deposit and free margin. And can lose only your capital amount. Your all trades will be closed automatically when your balance is 0$.
Yes your trades will close automatically once your account balance cannot support them anymore. That is called marginal call and to prevent that you need to set a stop loos (s/l) value on most of your trades.
I do not know what should I do if my trade has a very large floating. I do not want that to happen to my trade, and therefore I always use a stop loss to avoid a huge loss especially margin call....
I strongly agree, no way we can lose is greater than the deposit. will only be possible if there is a minus not more than $ 1 in our trading account ballance, if possible until minus a hundred dollars, of course, there will be no traders who experience a margin call, and all traders in the world would be a success all.
We trade for money. Do you think we could earn much by just using 1% of what we have? If you have a lot as balance what you do is reasonable.
I dont think it does any good to me trading 1%. Its just a waste of time. I usually earn 8-10 pips and also looses these in one trade. Whenever i losses i lose by a big margin. Thats what i dont get and it freaks me out.
Hmm if you are using strict stop loss it is fine to utilise more margin, but what if you want to trade with long term trend, and in short term it may trigger your stop losses several times, if long term trend is intact why should not you add positions on every fall, that is possible only if you use litlte of your margin.
It is true we must not do that but you do not need to convince me of the importance such as money management. It is all about knowledge of negotiation. Trader is learning all the time - even with 10 years experience. It does nothing.
I think so that lose is greater than to deposit ,meray kehayl sy apko moeny management bohat jarori hy trading me apko ku k is sy ap apna balance be safe rakh sakty hen or profit be bna sakty hen .
It is not possible to suffer lose more than your deposit except if there is bonus deposit which allow you to hold more pips in
floating minus condition. If I don't make mistakes, there is 30% deposit bonus from InstaForex so it's possible to loss more than
your deposit in InstaForex.
Using strict stop loss is not wrong because the losses will be limited when you use strict stop loss but it will be better if
you set stop loss as condition in the market. So you shouldn't set Stop Loss without considering condition of market to
set SL and TP in the best position.
There is no way to lose more than you deposite.That is why there is a margin call which will close all your position when your equity is 0$
Thats why we are very greatful for this forum which gives us bonus money to trade ,we are still learning and we donot have to make deposite with out own money.
When i blew my account once it was -3.00. Anyone knows what will happen if i deposit more??? Eventually it will be subtracted right?
I know its easy to know by depositing a small amount, but i am not ready to do that..
If you want to do trading then it is not possible for you that you will be succeed, some time you will be succeeded but some time you be fail then it is not a problem if you fail in forex market then infect you will be succeeded because you have gain more experience of market.
basically humans have a tendency to be able to obtain greater than what he had. if done in the forex trading it is very dangerous. not only the whole of your deposit will be lost but also your heart will beat faster and it is not good for your health.
most traders think if I had to use most of the equity that I have certainly profit which I was going to get bigger - and almost always forget - that if I had to use most of the equity that I have the entire equity will be exhausted.
if you make a deposit then you will get an additional margin to trade or as a defense of your floating minus.
but the main problem is not on it, just on how well prepared you are to accept the fact whether any profit or lost in trading.
I suggest you should put hedging position (entry opposite with equal size of lots) or closed if you have enough margin to make a fresh trade, then began to trade again with a small size of lots while restoring your mental and emotional.
when you do the hedging, then you can just close the position which profits only (green pips). because if you close a losing position (red pips), the more margin is consumed, it means that "miss MC" is eager to kiss you.
many newbies seem still not familiar with this kind of terms right? they think that as long as they hold the position open although the loss is greater than the profit then their account will be just fine, lol. no my dearest newbies, there's rules for every broker that stated your minimum percentage of balance adequacy to keep your account alive. if you cross that limit then your account will wiped out entirely.
The mos timportant is limit your losses so you won't experience losses more than you could afford to take. About is it possible to
face lose more than your deposit, it's not big deal. But it's possible when you got bonus deposit or you used bonus account because
you didn't make any deposit when you're using bonus account.
I already faced this issue before, and so i feel i can rightly reply your querry, if your account was stopped by the broker - it is like a fresh account now and next month whatever profit you make on your bonus you shall be able to withdraw and good thing you need not earn the bonus you lost this month.
What do you mean by stopped by broker? I got margin call and now the balance is negative. So next month i will only be having the bonus that i earned from this month with this forum. What i understand from what you told is that i will be able to withdraw my profit without making the money i lost the month before. If that is what you meant then it will be great relief.
This will can happen any time ,depend on the luck and experience you gain.While trading forex no one can get profit every day.that's the nature of the business,but good traders avoid facing big looses.
if you trade with long term then you need to calculation about how many pips you can take with your balance. And you need to trade with money management. I am all time trading with money management so in this situation i can wait for back market. And i have several time success with this.
Practically i don't think it can happen to anybody. Because as soon as your available margin becomes less than the required margin you get a margin call and all your open orders are closed by the broker. So you can not loose the amount greater than you deposited.
we should be able to know whether it is still possible, but actually I prefer to always put SL in order to avoid greater losses, because you never know where the direction of price movement that occurs.
If you have a large capital say like 10000 $ you can be more comfortable with your trading, so the margin call will be more far away from you, but if you have a small capital you can face this problem at many times.
yes,margin calls prevent our trading loss not to be more then the deposit amount .I think here leverage also becomes an issue to protect your trading account t be blown up .When the broker sees that in spite of giving leverage ,you are losing the money and all goes in negative balance - before that happens only you account becomes closed.
Hmm if you are using strict stop loss it is fine to utilise more margin, but what if you want to trade with long term trend, and in short term it may trigger your stop losses several times, if long term trend is intact why should not you add positions on every fall, that is possible only if you use litlte of your margin.