Playing safe, it that's a thing :)

True Neal! Low volatility = high liquidity. So, trade when the spreads are low during major forex sessions.

 

Is it true that we can receive a margin call when holding position and the spread widens? Got it twice due to low balance so checking on every possibility now

 

Playing safe can't always give you good returns. It's believed higher risk can give you a higher return.

 

Sometimes it never hurts to take a little bit of risk.

 

It is indeed. But one shouldn’t worry at all since you can protect yourself by limiting the leverage used in the account. I’m sure a good brokers like fxview, xm, and etoro to name a few helps out in situations like these. Or, hold onto a trade when the spread widens till it narrows down back.

 

I don’t want to compare, but would like to know how much of your capital do you risk per trade, thanks.

 

I know, that’s why we are all here

 

Trading without using stops in cases where the price moves in the opposite direction can be one of the reasons for a margin call.

 

I’ve heard and it’s quite scary for me at least, that leverage brings with it a possibility that the trader may owe the broker more than what he deposited?

 

@Cortney sadly yes. Traders operate under the pretence that the account is working in a good condition. But what many of us don’t understand is that using leverage means that our account isn’t able to handle the strong movement.