Newbie question about Forex trading risk...

[ertuti]

I understand that it's easy to lose your cash fairly quickly trading forex particularly with higher leverage, but let us say someone opened an account with very little cash. Let's use $200 for instance. Is it possible to lose over that $200 you deposited into your account? Like can the forex brooker say you owe them money because of your losses? Or is that $200 the absolute?

[ertuti]

The retail broker will close some open trades that you need if your margin requirements have been exceeded.

For example, a mini contract together with my retail broker (cms) ties up $25 of the money. If I begin to drop money and my account falls below $25 the broker will shut the trade before I hit zero.

Hope that helps. Ok thanks... And it was CMS that I would eventually be considering opening an account with. I was searching through their online contract and I only wanted to be sure I had been reading everything right.

[rociomerax]

The retail broker will close any open trades which you have if your margin requirements are surpassed.

For instance, a mini contract together with my retail broker (cms) ties up $25 of my money. If I start to lose money and my account drops below $25 the broker will shut the trade before I hit zero.

Hope that helps.