Hi,
Just a general question, I've haven't blown my account (yet) ;-)
I was wondering what happens in a situation like this:
Say you have a small balance in your account and you are using a fair amount of leverage.
If price goes the wrong way you would eventually get a margin call.
But what if price suddenly moves against you, goes straight through your stops and ends up at a point far beyond your margin or account limit?
Like CHF did in 2015 for example.
What is the situation afterwards?
Would your broker be in trouble, or would you owe money to the broker?
Or do different brokers have different procedures in such cases?
Thanks :-)
Just a general question, I've haven't blown my account (yet) ;-)
I was wondering what happens in a situation like this:
Say you have a small balance in your account and you are using a fair amount of leverage.
If price goes the wrong way you would eventually get a margin call.
But what if price suddenly moves against you, goes straight through your stops and ends up at a point far beyond your margin or account limit?
Like CHF did in 2015 for example.
What is the situation afterwards?
Would your broker be in trouble, or would you owe money to the broker?
Or do different brokers have different procedures in such cases?
Thanks :-)