Too good to be true

Could you enlighten me Gerry :confused:

Well I didn't read it thoroughly but what you've asked is a trivial question. Of course you can't lose more than you have deposited (otherwise broker will pay for your losses what is unimaginable).
But in exceptional cases where broker can not close a traders' order at critical level (for example no available price at the market due to lack of liquidity) then the balance can go into negative what considering good leverage can drive you into serious problems.
Basically many brokers offer "negative balance protection" (for example I also have it at Нotforex) but the point is it can be barely seen as an advantage or privilegie for you. Events like CHF "black swan" are extremely rare on the forex market.
 
Well I didn't read it thoroughly but what you've asked is a trivial question. Of course you can't lose more than you have deposited (otherwise broker will pay for your losses what is unimaginable).
But in exceptional cases where broker can not close a traders' order at critical level (for example no available price at the market due to lack of liquidity) then the balance can go into negative what considering good leverage can drive you into serious problems.
Basically many brokers offer "negative balance protection" (for example I also have it at Нotforex) but the point is it can be barely seen as an advantage or privilegie for you. Events like CHF "black swan" are extremely rare on the forex market.

Thanks for this detailed reply, i had heard of this NFP but i wasn't sure about it.. but now i have clearly understood it.
 
Well I didn't read it thoroughly but what you've asked is a trivial question. Of course you can't lose more than you have deposited (otherwise broker will pay for your losses what is unimaginable).
But in exceptional cases where broker can not close a traders' order at critical level (for example no available price at the market due to lack of liquidity) then the balance can go into negative what considering good leverage can drive you into serious problems.
Basically many brokers offer "negative balance protection" (for example I also have it at Нotforex) but the point is it can be barely seen as an advantage or privilegie for you. Events like CHF "black swan" are extremely rare on the forex market.

In those rare cases, it can make a huge different. When Alpari UK went down, several traders with big positions not only lost everything they had but were left with sizable debts.
 
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