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FXCM - Loose more than my deposit capital #461923
08/30/16 04:55
08/30/16 04:55
Joined: Mar 2006
Posts: 1,993
Karlsruhe
PadMalcom Offline OP
Serious User
PadMalcom  Offline OP
Serious User

Joined: Mar 2006
Posts: 1,993
Karlsruhe
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?

Re: FXCM - Loose more than my deposit capital [Re: PadMalcom] #461929
08/30/16 11:23
08/30/16 11:23
Joined: Jul 2000
Posts: 27,977
Frankfurt
jcl Offline

Chief Engineer
jcl  Offline

Chief Engineer

Joined: Jul 2000
Posts: 27,977
Frankfurt
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.

Re: FXCM - Loose more than my deposit capital [Re: jcl] #461936
08/30/16 14:18
08/30/16 14:18
Joined: Jun 2013
Posts: 1,609
D
DdlV Offline
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DdlV  Offline
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D

Joined: Jun 2013
Posts: 1,609
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!

Re: FXCM - Loose more than my deposit capital [Re: DdlV] #461947
08/30/16 16:36
08/30/16 16:36
Joined: Mar 2006
Posts: 1,993
Karlsruhe
PadMalcom Offline OP
Serious User
PadMalcom  Offline OP
Serious User

Joined: Mar 2006
Posts: 1,993
Karlsruhe
Thanks for your replies. What kind of mechanisms can I use except leverage and stop loss to avoid that?

Re: FXCM - Loose more than my deposit capital [Re: DdlV] #461949
08/30/16 16:42
08/30/16 16:42
Joined: Dec 2013
Posts: 568
Fuerth, DE
Sphin Offline
User
Sphin  Offline
User

Joined: Dec 2013
Posts: 568
Fuerth, DE
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.

Re: FXCM - Loose more than my deposit capital [Re: Sphin] #461952
08/30/16 18:04
08/30/16 18:04
Joined: Dec 2013
Posts: 568
Fuerth, DE
Sphin Offline
User
Sphin  Offline
User

Joined: Dec 2013
Posts: 568
Fuerth, DE
Quote:
What kind of mechanisms can I use except leverage and stop loss to avoid that?

If you find some pls let me know, I also search for one! laugh 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.

Re: FXCM - Loose more than my deposit capital [Re: Sphin] #461969
08/31/16 15:33
08/31/16 15:33
Joined: Jul 2016
Posts: 64
G
gtell Offline
Junior Member
gtell  Offline
Junior Member
G

Joined: Jul 2016
Posts: 64
Sorry, what happens if you loose more than you deposit?
Do they ask you money?
How does it work?

Re: FXCM - Loose more than my deposit capital [Re: gtell] #461977
08/31/16 17:19
08/31/16 17:19
Joined: Mar 2006
Posts: 1,993
Karlsruhe
PadMalcom Offline OP
Serious User
PadMalcom  Offline OP
Serious User

Joined: Mar 2006
Posts: 1,993
Karlsruhe
They might ask them to mow their lawn for a few years but more likely you'll have to pay for your loss laugh

Last edited by PadMalcom; 08/31/16 20:03.
Re: FXCM - Loose more than my deposit capital [Re: PadMalcom] #461978
08/31/16 17:25
08/31/16 17:25
Joined: Dec 2013
Posts: 568
Fuerth, DE
Sphin Offline
User
Sphin  Offline
User

Joined: Dec 2013
Posts: 568
Fuerth, DE
I would suggest before you go further in trading please make sure that you really understand all possible risks!

Re: FXCM - Loose more than my deposit capital [Re: Sphin] #461979
08/31/16 18:01
08/31/16 18:01
Joined: Apr 2007
Posts: 3,751
Canada
WretchedSid Offline
Expert
WretchedSid  Offline
Expert

Joined: Apr 2007
Posts: 3,751
Canada
Eh, what could possibly go wrong?!



Shitlord by trade and passion. Graphics programmer at Laminar Research.
I write blog posts at feresignum.com
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