Is it possible to lose more money than you invest in Forex trading?
Asked 5 years ago
I understand that investing has risks and that I could potentially lose the money that I invest, but I was wondering if it would be possible to lose more money than I invested in the first place? Could the shares I buy depreciate enough that I could lose more money than I invested and somehow end up in debt?
Osasere Okunloye
Sunday, August 08, 2021
No, you cannot. The broker will automatically close your position in the trade if you lose as much as you invested. It's in the broker's best interest to take that decision so as they don't run at a loss. However, as a trader, you should not be in that position. Always make sure you use stop losses for your trades, it is the best way to be safe.
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