Forex Leverage

Discussion in 'Trading' started by noob_trad3r, Mar 1, 2010.

  1. I see these places that let you trade 400:1 in forex with only 10 dollars cash to start. They let you use paypal or visa.

    I found one that lets you do 700 to 1 with 10 dollars.

    I never seen etrade let you use Paypal or visa to buy stock

    So what happens then if you do trade the max leverage and lose? and now turned 10 dollars to negative 4000 dollars.

    What happens then, if you say FU and never log back int?

    Can they send someone to your house to shake the money out, like some kind of collector just like if you bet sports in brooklyn?
  2. Ummmm it's called a margin call....

    The broker will liquidate your positions before it ever reaches negative territory (and usually much before).