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Author Topic: Liability  (Read 3562 times)

Offline peterb11

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Liability
« on: June 01, 2009, 03:21:29 PM »

I understand clearly that one only trade funds that you can afford to loose completely, after all ForEx is very high risk, even with FAP.

Alpari advise that they cannot guarantee that your liability is limited to the balance of your account.

However, if you _always_ open a position with a Stop Loss set correctly (which must also take into account all other other open positions) then presumably you cannot loose more than the funds in your account.

Can somebody tell me if this is correct?

Many thanks

Peter

Offline DaveL

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  • Posts: 2699
Re: Liability
« Reply #1 on: June 01, 2009, 04:11:28 PM »
I believe the problem can be that even if you set a stop-loss, execution can be delayed for many reasons, especially if the market is moving very rapidly, and this can leave you exceeding your ideal exit position. In this case, your margin is hit harder than you planned for, hence you can lose more than you deposited.

regards
Dave
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