Cryptocurrency Q&A
Can you lose more than you invest with leverage?
Can you lose more than you invest with leverage?
ShintoMystic
Wed Mar 26 2025
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7
answers
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I'm wondering if it's possible to lose more money through leverage trading than what I actually invested. Could using leverage potentially put me at risk of losing more than my initial investment?
7 answers
Bianca
Fri Mar 28 2025
Negative balance protection is a safety measure that prevents a trader's account from going into debt.
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KimonoElegant
Fri Mar 28 2025
Without this protection, a trader's losses can spiral out of control if the market moves against their position.
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Arianna
Fri Mar 28 2025
Leverage in forex trading can result in significant financial risks.
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SumoHonorable
Fri Mar 28 2025
Traders need to be aware that they might lose more money than they initially invested.
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SarahWilliams
Fri Mar 28 2025
In such cases, the losses can exceed the original investment amount.
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