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

    • This topic was modified 2 years ago by  Khanh.
  • #1914

    Khanh
    Keymaster

    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.

    • This reply was modified 2 years ago by  Khanh.
    • #1933

      James84
      Participant

      Thanks Beheer

  • #1949

    Sophie
    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.

    How does it work then? With 100 pound you buy shares for 2000 pound . You then lose the entire amount of 2,000 pounds , but you only paid 100 pound . Who paid the difference 1900 pound then?

    • This reply was modified 3 years, 2 months ago by  Sophie.
  • #1953

    Sophie
    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.

    But who will pay for the loss difference of 200 pounds? Suppose you bet 100 and you bought for 2000 then you lose everything , all 2000. Who paid the difference of 1900? Even if Plus500 close your position at 100 loss, you can also have some other positions open that is currently at a (small) loss. Does Plus500 close ALL your positions at the moment that is had reached a total loss on all positions of the total value of just your stake in this case – 100 pound ?

    • #1954

      Khanh
      Keymaster

      Hi Sophie,
      Plus 500 is responsible for any losses that is not covered by the balance and so they will pay for it . However the positions are immediately closed when you do not have enough balance, this way Plus500 makes no loses. In the case of the remaining 1900 Pounds Plus 500 is the lender. They provide a kind of loan which you paid in the form of night premiums interest .

      • This reply was modified 3 years, 2 months ago by  Khanh.
  • #2076

    James84
    Participant

    Thanks for your answers Khanh

  • #2085

    Cassy
    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 years, 11 months ago by  Khanh.
    • #2104

      James84
      Participant

      Thanks Cassy

    • #2410

      Khanh
      Keymaster

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

    • #2411

      Khanh
      Keymaster

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

  • #2409

    Khanh
    Keymaster

    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

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