Before deciding to participate in the Forex, Futures or Stocks market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose.
There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair.
More over, the leveraged nature of forex and futures trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin requirement, your position may be liquidated and you will be responsible for any resulting losses. To manage exposure, employ risk-reducing strategies such as ‘stop-loss’ or ‘limit’ orders.
There are risks associated with utilizing an Internet-based trading system including, but not limited to, the failure of hardware, software, and Internet connection.
Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary, and do not constitute investment advice. Vahrokh.com is not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Vahrokh.com has taken reasonable measures to ensure the accuracy of the information on the website. The content on this website is subject to change at any time without notice.
This is not a solicitation to trade nor will provide trading signals, this is just an education web site.
We have also warn you that the materials shown here are not a get rich quick scheme, nor an hobby as we have to make money and not lose it.
Trading is a real profession taking months to learn. Those unable to endure reading and practicing a lot may as well stop now.
Warning: you could lose more than your whole account!
We have been contacted by traders asking if and how it’s possible to lose more than their whole account.
With nowadays automated margin call technologies it’s quite rare but very possible.
This is an excerpt taken from an actual broker contract and covering this issue:
[Broker Name] reserves the right to automatically close out the client’s positions incurring a loss, in the event that the margin deposit is not enough to cushion an adverse market move. When the equity goes equal to 100% of the margin required, the position is automatically closed based on the extent of loss incurred, even though the underlying market is closed.
However in the case of a price gap causing equity to be below or equal to 0, the position(s) are automatically closed at the market open price for that session.
If the liquidation causes a negative equity, the client is obliged to deposit the required funds to clear the account to ensure equity is positive/zero.