What happens when accounts get blown up? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

I will never use a stop loss, as I wait my account to get blown 4 replies

How many real accounts have you blown before consistently making money in FX? 61 replies

short on eur/us..my entry order got blown by 11 replies

Have you ever blown an account? (Poll) 3 replies

Anyone blown his account before? 23 replies

What happens when accounts get blown up?

  • #1
  • First Post: Mar 11, 2020 1:19pm Mar 11, 2020 1:19pm
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 :-)
  • #2
  • Mar 11, 2020 1:50pm Mar 11, 2020 1:50pm
That depends on whether or not the broker you use offers negative balance protection.
For the most part you do not have to worry about a situation like this happening as it is very rare...
But if it does worry you, choose a broker that has terms and conditions which will protect you from this.
  • #3
  • Apr 23, 2020 1:08am Apr 23, 2020 1:08am
Glad you mentioned the EUR/CHF debacle in 2015.

Private retail traders should not have been on the wrong side of that trade. You will see on the charts that price had been falling for about 18 months. Focusing in on the months prior to this pair's crash on 15/01/15, you see that the 20EMA was below the 50EMA since the previous June 2014, and that the 50EMA had been trending downwards and mostly sloping downwards since 2013. There was no TA reason to be long this pair in Jan 2015.
  • #4
  • May 4, 2020 3:39am May 4, 2020 3:39am
Quoting viptrading
That depends on whether or not the broker you use offers negative balance protection. For the most part you do not have to worry about a situation like this happening as it is very rare... But if it does worry you, choose a broker that has terms and conditions which will protect you from this.
its a good suggestion , thanks, this situation can make worry most of the traders particularly the New forex traders, but if you have the right broker then there is a chance to come back form this worst situation.
  • #5
  • Aug 24, 2020 4:36pm Aug 24, 2020 4:36pm
Quoting marwood
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...
If you blow your real account you have to deposit again to start trading. It only happened to me in demo account. But if it happens in my real account, I will take a break for week or month.
  • #6
  • Last Post: Aug 27, 2020 8:15am Aug 27, 2020 8:15am
Always make a plan to make money from this market. Most of the traders lose their money because of using wrong strategy.
0 traders viewing now