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Margin Call, Stop-Out and Negative Balance Protection - how does it work? [Video]
Every investment comes with risk. It's a cliche, but everyone has heard about the dramatic stories of ignorant investors who floated on the market. In order to reduce the lamentation and unhappy stories to a minimum, a number of solutions were developed to eliminate the phenomenon of bankruptcies. Margin Call and Stop-Out these are mechanisms on every trading platform that are designed to protect us against an overdraft on the account. But are they absolutely reliable? And if so, where did you come up with the idea of introducing additional protection against the formation of a negative balance? We answer these and many more questions in this material.
What will you learn from the video
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Can we lose more than we have on the Forex market?
- How does Margin Call and Stop-Out work?
- Risk related to capital protection mechanisms,
- Negative Balance Protection - an absolute rescue for (not) everyone and (not) always.
The partner of the educational cycle is Tickmill broker.
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