Rivalo brasil reveja on your proficiency and market understanding level it may not be suitable for all the investors. It is recommended to be aware of the Binary Options trading, have a knowledge about the markets, underlying asset types, industry standards and rules applied. It is also presumed that none of your investments constitutes a significant part of your income. It is not recommended to invest more than 5% of your total monthly/yearly income into any sort of trading. By entering into the Binary Options trading you unconditionally agree and understand that it may result in the total loss of your investment as a result of incompetent trading decisions and/or market fluctuations.
Let’s assume your deposit is $100. As in the previous example, you decided to open a deal to “buy” the euro for $5000. To do that, you took the leverage of 1:50. But the euro against the dollar went down and fell in price by $0.1 during the day.
So, your losses could have been $500. But a forex dealer will not let you lose more than your real trading account, that is more than $100. As soon as the Euro to the dollar slips by $0.02 (with your losses amounting to $100), the forex dealer will immediately close the deal and zero the account.
However, it is not enough to lose the whole amount on the account.