eToro – Forex Trading Forum

[AjLeece591]

Hey all,

I tried searching around the site for information regarding the leverage, but didn't get all I was looking for.

My question is regarding how the leverage is handled for each trade. If a trade doesn't go my way and my position is wiped out, am I into these guys for more than I invested to begin with?

For instance, if I make a trade with $25 and 1:400 leverage, and it goes the wrong way, do I just lose my $25 or are they giving me the margin call asking for the other units of currency they put up as credit, meaning im now into them for several thousand dollars.

Any information, experiences from traders using real money accounts would be greatly appreciated.

Thanks in advance

[Admin-Support]

Hi,
when trading with eToro, each trade is limited by an automatic stop-loss.
The auto stop loss means that your position will be closed as soon as it has reached the minimum rate for you investment. That wa you will not lose more than your initial position.
You can control the trade manually, meaning that you tell the position when to close. if for example you want to close it when you've made +50%, then it is called "take-profit", if you want to trigger it when you've reached -50% then it is called "stop loss".
As mentioned before, while the "take profit" option is unlimited, the stop loss cannot be more than 100% for your position.

We hope this answered your question, and wish you successful trading.