You Can Lose More Than You Expect
Trading with leverage means a small move in the market can produce a large move in your account, in either direction. Losses can arrive faster than you can react to them.
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What trading actually risks, written so that it can be understood rather than skipped.
Trading with leverage means a small move in the market can produce a large move in your account, in either direction. Losses can arrive faster than you can react to them.
An automated system follows the rules it is given. It cannot tell whether those rules are wise, and it cannot protect you from a market that behaves in a way nobody expected.
How a market behaved last month tells you nothing about what it will do next. Any figure describing past results is history, not a forecast.
Prices can jump between the level you expected and the level you get. Trading can be suspended. In fast markets, the order you placed may not be the order you receive.
If the market moves against a leveraged position, you can be asked to add money to keep it open. If you cannot or will not, the position can be closed at a loss you did not choose. That request arrives when the market is already moving against you, which is why the limits people set in calm moments matter most.
Trading is not a suitable activity for everyone. If you are unsure whether it suits your situation, speak to someone qualified to advise you on it.
Only trade with money you can afford to lose. Never fund an account with borrowed money, with your rent, or with money you need for anything else in your life.
Think about what losing that money would actually mean for you, and be honest with yourself about the answer.
Start with the smallest amount you would be comfortable losing completely, and only add more once you have seen what a losing run feels like. The first deposit is not a test of the platform. It is a test of how you handle a red number.
Every trade carries a cost, whether the market moves your way or not. Those costs are small one at a time and they add up over a month of trading, and they are charged on losing trades exactly as they are on winning ones.
Before you deposit, read the terms of the account you are opening and make sure you understand what each trade costs you. If anything there is unclear, ask before you fund the account rather than after.
Lavandbit provides a technology platform. The engine reads market data and places trades according to rules you set.
We do not provide financial advice. We do not tell you what to trade, how much to risk, or which markets suit you. We do not manage your money for you. Every trading decision on your account is yours.
If anything on this page is unclear, or if you are not certain that trading suits your circumstances, take independent advice before you open an account.
Doing nothing is a legitimate choice, and it is always available to you.