Disliked{quote} You should read the situation again. If account A margin calls, then the client will simply lose 100% of what he/she deposited. Yet if the account goes into 1000% loss (meaning 10x the original deposited amount) then the BROKER will have to assume the remaining loss, as they fronted you the money which allowed you to "over leverage". The situation I set forth reveals how the broker has ALL the risk compared to the client who has minimum risk as the client can't lose more then what he/she deposited, while the broker can go bankrupt for allowing...Ignored
If this ever happens to me I will make sure to send the broker my best middle finger salute. There is no need to add insult to injury (:
In the long run ALL the money from ALL the accounts goes into the broker's pocket. The business model of any brokerage firm is simply to tranfer the customer accounts to the broker's account.