FXCM - Loose more than my deposit capital

Hi I remember I read about one advantage of currency trading is that you cannot loose more money than you transfered to your account.

FXCM's general terms now state (German) "Mir ist bewusst, dass automatisches und halbautomatisches Trading hoch spekulativ ist und in diesem Zusammenhang die Möglichkeit besteht, dass die Verluste meine Einzahlungen überschreiten."

Can someone explain that to me?

You can indeed lose more than your deposit when the broker can not immediately close your trades in case of a market crash. This happens rarely, but it happens.

Hi PadMalcom. No sure where you read this, but it is not true. You can lose more than you invest.

And a further add-on warning to jcl's comment: Please be aware that when this rare situation happens your losses can be huge - not just a little more than you invested - it can be many times your invested capital! Beware!

Thanks for your replies. What kind of mechanisms can I use except leverage and stop loss to avoid that?

FXCM changed its conditions crucialy in 2015 after the SNB incident 01/15. Before they had a "negative balance protection" (that means you cannot lose more than you have invested) that saved me and many other customers a lot of money that FXCM had to balance and I think they don't want to do it again.

If you find some pls let me know, I also search for one! The only mechanism I know is to deposit enough money and not to trade with more (concerned to the amount you move, not to the margin) that you are willing to loose.

Sorry, what happens if you loose more than you deposit?
Do they ask you money?
How does it work?

They might ask them to mow their lawn for a few years but more likely you'll have to pay for your loss

I would suggest before you go further in trading please make sure that you really understand all possible risks!

Eh, what could possibly go wrong?!

Haha, so true!