One of big lessons i learn when i'm beginner is stay away from margin. When the market is up, you get double prize. But when the market goes down, you lose all you got. Understand everything and choose wisely before doing.
Aren't you referring to binary options? It's near impossible to bust yourself out of your position entirely by "just" having a 100% reward potential, unless the price of whatever asset absolutely tanks like there is no tomorrow (which in that case would indicate that you bought in at peak levels) and you don't do anything to stop it.
If you're trading on a professional margin platform you should be in the position to add more margin to you existing position in order to prevent a total bust. In case you're using binary option platforms you can't do that, but binary options have nothing to do with trading or investing since it's gambling. You either win or lose, there is no inbetween.
Binary option platforms mostly have an insanely high house edge of up to 30% which should be a discouraging factor, but it's not unfortunately. People are too dumb to understand how poor the risk to reward ratio is while the chances of winning are flat 50%. You get more bang for your buck by putting the same money on red or black in the casino, lol.
Generally speaking such a situation may be possible on trading futures or exchanged-traded options (I mean sold options). By the way a broker may close or cut an amount of a client position if a margin call happens it need to read rules of a broker.
Be carefully, "Forex kitchens" and binary options are scam.
this is what makes me dislike trading like forex, I am more happy with trading cryptocurrency in the market, because it looks real and clear
True Forex is not bad
Yes most people that day trade or desperate to find a different way of life. So they jump in and see the dollar signs and trade way to aggressively. They may win for a second but in the end the house wins. The house also cheats which makes the situation even more one sided.
Yeah, "Forex kitchens" attract gamblers
Not so long ago I got known that there is the rule 90/90/90 which means that 90% retail traders lose 90% of their deposited margin $ within 90 days. I am wondering to get to know your opinions, experience and observations to figure out whether the rule works or do not work.
What about my opinion, I guess it is really true because every retail trader, whom I knew, lost money on margin trading with various assets (Forex, futures, CFDs).
That's fact and we already knows that as reality. Maybe they don't have enough preparation and psychology when enter the market or they get wrong analyze/signal and still believe will get income at this moment. That's why basic knowledge and practice needed, don't ignore it. Dream is fine but start with wrong step will lost your asset.
It need to be crazy to start beginning trading with a margin account