Topic: PLus500: Can you lose more money then you have used on your trade?

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    • #1913
      James84
      Participant

      Dear,

      I’ve been trying the demo account of plus500 and this goes surprisingly well thanks to your guys.
      But I still have a question.
      Suppose you put 100 pounds in the account and you lose let say 300 punds. Does this means that you only lose 100 pound of 200 pounds extra??
      thanks in advance

    • #1914
      101trading.co.uk
      Participant

      Hi James84,
      Plus 500 automatically close when your position is at loss. When your loss is bigger then the available cash on your account then Plus500 will close your position and you will lose all the money that is on your account and not more. Only what is on your account.

    • #2076
      James84
      Participant

      Thanks for your answers Khanh

    • #2085
      Ashe
      Keymaster

      Yes, what Khanh said is correct. There are not many CFD online brokers with negative balance protection, but Plus500 is one of the few. This does mean you cannot lose more money than you deposit. Once you equity goes to 0, your position is indeed automatically closed and if this happens, this is called ´Margin call´.

      If you have any other questions, please feel free to reply again 🙂

      Btw, Google “negative balance protection” for more info regarding this.

      • This reply was modified 2 weeks, 6 days ago by Ashe.
      • #2104
        James84
        Participant

        Thanks Cassy

      • #2410
        101trading.co.uk
        Participant

        It’s a bit late but thank you for explaining the negative balance protection so well

    • #2409
      101trading.co.uk
      Participant

      Hi everyone,
      Because of the request by many people. One of our team members have wrote a blog about what happens with your money at plus500. You can read this blog here: Plus500, what do they do with my money

    • #4650
      tracyneo
      Participant

      A lot of brokers try to make restitution to their clients.Therefore, if the market moves against your trade enough, it could take your account balance negative. That is why you can always get a short-term loan deal to protect yourself from short-term capital losses. But if you are a newbie in trading – dont do that.

      • This reply was modified 2 weeks, 6 days ago by Ashe.
    • #102879
      nervosu
      Participant

      I don’t even understand why people are looking for such a huge number of options how to ruin their health. From this, neither they nor anyone is feeling bad. You can have fun somehow and without any harm and I understand that many condemn and do not encourage this at all, but nonetheless, I see nothing bad.

    • #102893
      nervosu
      Participant

      I think that you should always be conscious of risks and not risk a greater amount than you really are willing to spend. Keep in mind that there are risks everywhere, even when you keep money in a bank simply. Personally, I take risk as a noble cause. I think sometimes such entertainment will not hurt.

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