ForEx Leverage and Margin Question?

Question

Hi, lets say I open an account with $250, therefore qualifying for $100,000 margin balance (to my knowledge). If I'm trading EUR/USD and I buy 30 lots, INSTANTLY my losses are $300 (at least) even though they will, later on, increase, wouldn't my trade autoclose thus eliminating my original account equity?

Answer 1

How do you know they will increase?  In fact, any reputable broker will not allow you to go debit on an initial entry.  You cannot do this trade.

Answer 2

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Answer 3

Yes, sure it'll closed automatically .

Answer 4

no, because you would get margin call first.

Answer 5

In short yes. I trade FX and I do not think its possible with less than about 3K. 250 is not enough to weather even the smallest drawdown. Learn by papertrading first then try real money.

30 lots is $3million you wont be able to get that much leverage unless you have 100,000K in your account with any reputable firm. If its not reputable dont even bother giving them a chance.

Answer 6

Sounds like you're getting ready to lose your you know what. Go over to babypips.com and go through their training school. It's FREE and you'll gain some great information. Forex is great, and you can make a lot of money, but leverage is a killer. You'd better understand it more before you jump into trading Forex. A free demo account is available at Forex.com. They have a descent trading platform, but the one I like is with the Saxo Bank. Hope this helps. Good luck.