Forex Peace Army Members Forums>

[Dezo]

Hi Guys!
Another newbie here.
I started learning forex a few months ago, I don't trade yet, not even practice.
I read books ,forums, any info I can put my hands on.
Seems to me most of the brokers are ordinary thieves, they really out to get you , rob you blind.
You can loose as much as you want without any problem, once you get profitable even for short period of time your platform magically changes , slows down, connection problems , requotes etc.
In this environment the most important skill is self defense and preparation for the worst case scenario.
My major problem :
You can lose more than your trading account ,you don't even know how much more. How can you prepare for that?
How can you make sure , losses will not be more than your risk capital / account / ?
Dan

[Cesil]

I've never heard of a broker that'll let you get into negative numbers, they stop you out automatically even if you don't have your own stops, as soon as your losing trades start eating into the minimum margin requirements. God help anyone (including the broker themselves) trading with a broker that doesn't do this...

[ernest8fingers]

Originally Posted by rosy

Brokers are helpful to resolve your forex related issues they will automatically stop you in the case of loss.

I predict you will lose your Trading account in less than 30 days.

[Pharaoh]

Many (NOT ALL) brokers offer "negative balance protection" which usually just means they close your trades when you only have 5-15% of your account left. This is what's known as a margin call.

Practice safe trading. Always use a stop loss.

[sam111]

Originally Posted by Pharaoh

Many (NOT ALL) brokers offer "negative balance protection" which usually just means they close your trades when you only have 5-15% of your account left. This is what's known as a margin call.

Practice safe trading. Always use a stop loss.

No, Before Squaring your Positions, they inform you for squaring the position, this is called margin call. without any information no broker can square your open positions. Even My broker is also doing like this, AVAfx's Staff are very helpful and smart also. i didn't face any problem like this that without any prior intimation.

[Pharaoh]

If your broker takes the time to notify you that they are closing trades because of lack of margin, then your broker is risking having your balance go negative.

A good broker would send a warning when you are at risk of a margin call, but should go ahead and close your positions automatically when you hit the margin limit in your trading agreement whether they've successfully contacted you or not.

Of course, if you trade reasonable sized positions and use a stoploss, you won't ever have to face a margin call (or a negative balance). Risk management is critical to any long term trading strategy.

How to Manage Risk while Forex Trading

[fxfrench]

If slippage or major news release means that the broker's automatic margin call system fails you and causes your account balance to go into the negative, they should have a policy of writing off the negative balance to zero. Check your broker's terms and conditions and a suitable clause to that effect should be in there.

You should not be held liable if the broker's margin call systems fail to close your losing positions before your equity reaches zero.

[Cesil]

Originally Posted by sam111

No, Before Squaring your Positions, they inform you for squaring the position, this is called margin call. without any information no broker can square your open positions. Even My broker is also doing like this, AVAfx's Staff are very helpful and smart also. i didn't face any problem like this that without any prior intimation.

You'll find that most will post automatic messages across their platform when your account gets very close to 0. Other than that I'd suggest you read the fine print of your terms & conditions, at the end of the day they're there to make money not protect you, they'd have to carry the negative balance until the situation is resolved so (bar a massive gap occuring) most will attempt to prevent this from happening in the first place along with giving themselves the tools to do so (the fine print mentioned above)...

[Lhar_fpa]

Originally Posted by Dezo

Hi Guys!
Another newbie here.
I started learning forex a few months ago, I don't trade yet, not even practice.
I read books ,forums, any info I can put my hands on.
Seems to me most of the brokers are ordinary thieves, they really out to get you , rob you blind.
You can loose as much as you want without any problem, once you get profitable even for short period of time your platform magically changes , slows down, connection problems , requotes etc.
In this environment the most important skill is self defense and preparation for the worst case scenario.
My major problem :
You can lose more than your trading account ,you don't even know how much more. How can you prepare for that?
How can you make sure , losses will not be more than your risk capital / account / ?
Dan

It seems that you hate brokers, well, as most of the guys said here including the master seargent, not all brokers are doing their jobs for profit, they exist to help the trader, as your guide.