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Can I lose more than the fund I deposited?


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@Boniez

Oh you used InstaForex too, that was good then. I used that broker too because I could get free capitals to trade in there.

Yeah, we could make many accounts in InstaForex so if one account is Margin Call, we could use another account to trade.

 

 

That their system of giving trading bonuses is very great, i am active in all their sites including the russian version. There is a new site that they have for nigerians, it is located at www.nigeria-forex.com

But note that it is not meant for only nigerians, international members are invited

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  • 2 weeks later...

@chuna

Yes, that is the other forum from Instaforex too but I prefer to post in mt5 because it's more stable than nigeria now.

Back to topic, about we lost more than our fund which we deposited. That is possible if we got bonus amount from posting.

So we deposited only 10 dollars as an example but we got bonus posting is 90 dollars and then we lost 20 dollars :)

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You can not loose more than what ever you deposited. Because that amount will initially going from your brokers pocket which they will never do.What will happen is that if your margin is equal to the your portfolio value or your equity broker will automatically close the trade. Therefore you will not lose more than what you invest. But to avoid any such situation never use high leverage like 1:500 or 1:1000. if a trade did not go your way it will be disastrous.

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@sasanka

I am disagree with you. Using high leverage, 1:500 or 1:1000, is safer for newbie because it could hold our open positions until many pips.

It's reduce risk in trading especially for newbie who oftenly made mistake. But the risk will depend on each person not on the leverage.

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@sasanka

I am disagree with you. Using high leverage, 1:500 or 1:1000, is safer for newbie because it could hold our open positions until many pips.

It's reduce risk in trading especially for newbie who oftenly made mistake. But the risk will depend on each person not on the leverage.

apparently he was wrong understanding of leverage, but I'm so confused with your all understanding about leverage because conflicting. at least so far I have never experienced problems while using the leverage of trading despite a large / small

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  • 2 weeks later...

yeah i think its very common to loose extra money by deducting like a negative balance . i think it depends on many factors such you may have good leverage that allow you to get very high level and trade with it easy

indeed sometimes there are things like that, I also wonder, what causes it, I guess it was not because of leverage, because if the margin is not possible, then all orders will be executed automatically, perhaps the influence of the floating spread

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@boniez

If you didn't understand about leverage system, that was okay. For more explanation, please take a look in some websites about tutorial forex.

It will be more explanation and back to topic, if we deposited some funds in forex so we won't get loss more than we deposited.

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@hyipreviewblog

Yes, if about profit that will depend on your skill and ability to face every condition in the market. If you could make good analysis, that is possible

to gain profit more than your capitals. If you can get daily profit 1% daily, you can earn it more than your capital in 5-6 months.

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  • 1 month later...

1% daily can be negligible. I don't think anyone will set a goal of 1% daily, however realistic the trader is. Suppose someone got 5% a day, he could rest for the following four days. That's not what a trader should do. A trader should never stick to a fixed profit rate. You just open order when you see fit.

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If we use the highest leverage of about 1:1000, there is such no chance to loose more amount than deposited one, It can be neutralized but can be increased in reverse sign..... and while using low leverage like 1:10 or 1:100 there is no chance to neutralize at all...... so just be careful of open position...

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  • 3 weeks later...

@Nikhil

It is not too hard if you have good analysis because what I said that is hard not only its percentage which is only 1% but the harder part is

keeping consistency on profits. Maybe in certain day, it is easy to earn 1% profits even more than 1% but in other day, the condition will

be hard to be predicted and earn 1% profits is hard to realize.

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I agree with andry777 that there hardest part in forex is consistency. I can make a 100% profits in just two days trading but can I make it again in next trading. I don't think so. So the best is how we can make consistency profits daily or weekly. No need to big maybe around 2% daily it will be around 25% after minus some loss. It is better that bank interest I guess.

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You can't lose more than the fund you deposited. It usually will remain a few dollar or cents in your trading account base on your using leverage. The bigger leverage you use to less money will remain in your account or maybe it can be zero. But if you use a small leverage will make a remain more money in your account because you need more margin in every your trade,

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  • 1 month later...

No you can't loose more then the deposited funds in Forex. Once your are in loss and your initial deposit is about to end, a margin call takes place and the position gets automatically closed if your initial deposit is just not big enough to allow that position to move more against you.

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You can't lose more than the fund you deposited. It usually will remain a few dollar or cents in your trading account base on your using leverage. The bigger leverage you use to less money will remain in your account or maybe it can be zero. But if you use a small leverage will make a remain more money in your account because you need more margin in every your trade,

Totally true. Once your account turn to zero. its automatic close down of trade. In short you can't trade anymore. And even if you have some few cents in your account. As long its can't hold margin you can't trade. that's happen to me. That why I look for some pair that has less margin and I still loss. lols.

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Totally true. Once your account turn to zero. its automatic close down of trade. In short you can't trade anymore. And even if you have some few cents in your account. As long its can't hold margin you can't trade. that's happen to me. That why I look for some pair that has less margin and I still loss. lols.

 

Yes, that is true that our position gets automatically closed once we receive a margin call and our initial capital fails to carry the price movement of the active positions. However, there is a chance of loosing more than initial deposit in Forex. This is only when an active position is kept open during weekends and the price on that position moves unexpectedly to more than the initial investment you have on your trading account.

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This is not possible because you are only risking a special amount of your deposits you make to the broker. You can choose this and you can also trade with low deposits. Your risk you can reduced with setting a stop loss and all your trades.

 

Setting up a SL can surely help us avoid us to loose more than expected in a single trade. However, the SL's don't work on weekends. If a trader keeps their position open and the price moves below it, you still have to face big losses and in the worst case, your account gets blown up or can end up in negative balance.

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@andry and @boniez this is actually in exceptional cases that we shall get negative balance as usually the brokers will close the trades when they feel you are near to getting into losses. This they do because they dont want get into process to recover their money and they understand it is not easy to recover. So usually u dont loose more than your deposit balance.

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@andry and @boniez this is actually in exceptional cases that we shall get negative balance as usually the brokers will close the trades when they feel you are near to getting into losses. This they do because they dont want get into process to recover their money and they understand it is not easy to recover. So usually u dont loose more than your deposit balance.

 

Yes I do agree with you @yogesh that the trades gets automatically closed when our margin call is hit and we don't have enough margin to carry out the trade any further. But what if the position is kept open during weekends and the new week starts with a pair falling more then the available margin? That can cause us negative balance I guess.

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