Yes you certainly can lose more than your initial deposit. In such case you will owe the SB company money and they will for sure claim it. The only way to be sure not to lose more is to have a "Limited" account. If you are not an experienced trader, and in order to protect your capital I suggest you read into the subject of Risk & Money Management.
T2W have an excellent forum on this.
Planning, Risk & Money Management
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NVP
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B
with respect if you dont understand it dont do it ........your money will be parted from you through translation errors and/or trading errors
N
B
with respect if you dont understand it dont do it ........your money will be parted from you through translation errors and/or trading errors
N
Hi,
With respect I think you don't understand my question. I am not worried to lost all the money I did put in Tradefair, I was wondering if I could lost more. For example I put 1.000 gbp, can i lost 2.000 gbp or is their a stop lost?
If you for example are in overnight position, and there is a huge gap, a gap that jumps over your stop loss, you can end up losing a lot more than your initial account deposit. If that happens your account is in the red (minus), and you will owe money to the SB company.
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montmorencyt2w
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As it happens though, I think with LCG-based platforms, i.e. the white labels and CS, I think it's pretty unlikely to happen.
Off the top of my head, I can't remember exactly why that is, but Simon talked about this in a long interview that might still be online ... not on this site, but links to it (and similar) have been posted from time to time.
Not saying it will never happen, but .... anyway, this is one reason I quite like LCG-based platforms.
And I held plenty of overnight (and over-weekend) positions at one time, over a longish period. Not saying this is always a great idea for other reasons, but this particular event never happened to me.
Off the top of my head, I can't remember exactly why that is, but Simon talked about this in a long interview that might still be online ... not on this site, but links to it (and similar) have been posted from time to time.
Not saying it will never happen, but .... anyway, this is one reason I quite like LCG-based platforms.
And I held plenty of overnight (and over-weekend) positions at one time, over a longish period. Not saying this is always a great idea for other reasons, but this particular event never happened to me.
montmorencyt2w
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@Booz:
This is the site which used to contain the interview I mentioned above:
Financial Spread Betting for a Living
I haven't checked, but it might be the one labelled "Interview with the managing director of Capital Spreads".
CapitalSpreads Interview
If it's not the one I'm thinking of, I'm pretty sure it will be of interest, anyway. ISTR there was more than one interview with him, or maybe others in the CS stable.
There used to be lots of other interesting stuff on there, which may still be there if you drill down a bit. I've just not checked recently. I used to find that a pretty interesting site. I don't know if anyone keeps it up to date these days.
I know that CS is not Tradefair, but TF is a "White Label" of LCG (who own CS), and I believe uses the same "trading engine" under the covers of a different "wrapper", so in essence, I think it follows the same rules. The main difference is the "look and feel". TF used to have a nice, simple look and feel, which was why I liked it. Not tried it recently. CS was also ok, but at the time, I preferred TF. It also seemed a bit faster, for some reason.
If you avoid overtrading (in size and frequency) and avoid periods when the market is going crazy, or if when you know some bombshell is likely to hit the market, hopefully you should avoid major disaster.
Or you could just go onto the CS thread and ask him yourself (as it applies to CS, naturally ).
EDIT: This is not a complete, answer, but goes some of the way:
This is from the Q&A with Simon (and Angus) of CS (n.b. not Tradefair):
http://www.financial-spread-betting.com/Spreadbetting-industry-faqs.html
(Page 2)
And somewhere I think he says that they rarely end up with people owing them money.
EDIT2: You might find some of this section interesting also:
http://www.financial-spread-betting.com/reviews/
This is the site which used to contain the interview I mentioned above:
Financial Spread Betting for a Living
I haven't checked, but it might be the one labelled "Interview with the managing director of Capital Spreads".
CapitalSpreads Interview
If it's not the one I'm thinking of, I'm pretty sure it will be of interest, anyway. ISTR there was more than one interview with him, or maybe others in the CS stable.
There used to be lots of other interesting stuff on there, which may still be there if you drill down a bit. I've just not checked recently. I used to find that a pretty interesting site. I don't know if anyone keeps it up to date these days.
I know that CS is not Tradefair, but TF is a "White Label" of LCG (who own CS), and I believe uses the same "trading engine" under the covers of a different "wrapper", so in essence, I think it follows the same rules. The main difference is the "look and feel". TF used to have a nice, simple look and feel, which was why I liked it. Not tried it recently. CS was also ok, but at the time, I preferred TF. It also seemed a bit faster, for some reason.
If you avoid overtrading (in size and frequency) and avoid periods when the market is going crazy, or if when you know some bombshell is likely to hit the market, hopefully you should avoid major disaster.
Or you could just go onto the CS thread and ask him yourself (as it applies to CS, naturally
).EDIT: This is not a complete, answer, but goes some of the way:
This is from the Q&A with Simon (and Angus) of CS (n.b. not Tradefair):
http://www.financial-spread-betting.com/Spreadbetting-industry-faqs.html
(Page 2)
And somewhere I think he says that they rarely end up with people owing them money.
EDIT2: You might find some of this section interesting also:
http://www.financial-spread-betting.com/reviews/
Last edited:
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