eToro - What's The Most We Can Lose? - (Negative Balance Protection)

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BalticSeal: https://etoro.tw/2XFDZLG
Olivier Danvel (Forex): https://etoro.tw/2HM1ygq
Jaynemesis : (Equities/Cryptos/Mixed): https://etoro.tw/2UiBHRa
Slow And Steady (ETFs Only): https://etoro.tw/3dqAEpe
LombardEarnings (U.S Equities at Earnings): https://etoro.tw/2ATDCom
Miyoshi (Equities/ETFs/Indices): https://etoro.tw/3mEJGEx

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All trading involves risk. Only risk capital you’re prepared to lose.
Past performance is not an indication of future results. This content is for educational / entertainment purposes only and is not investment advice.

About The Video:

Can we make a trade so stupid or so unlucky that we end up owing eToro money? The answer is no, because of something called 'Negative Balance Protection'.

Negative balance protection is a way to ensure that we are only risking the funds that we have added to our eToro account - we can't wake up one morning and suddenly owe them more money than we had added to our account. I made a video recently about how this COULD happen:

https://youtu.be/DiyrklP6ekM

If something terrible happens and we have lost way more money than we anticipated overnight and we don't have enough money in our account to pay off our trading losses, then eToro will simply close any open trades we have, take whatever money we have in our account to cover our losses, and they will absorb the rest of the loss themselves and close our account.

Now, I have no actual experience of this - I'm going by what I've read on their site, and I hope I never actually get to the point of testing this out! But it does seems to be there as a safeguard, and I wrote to them in the customer support section, and they did state that you can't lose more money than you added to your account.

This isn't a license to trade riskily though - eToro won't just absorb our normal trading losses, and one bad trade could potentially put all of your other open profitable trades at risk as eToro uses its 'Margin Call' feature to close your open positions and cover your losses...

In this video I talk about how all of this might happen and share some thoughts about how I might avoid needing this sort of safety-net in the first place!
Etoro Beginners Playlist: https://www.youtube.com/watch?v=-qeBPdi5LR8&list=PLSp_9hRpu6lKOj-KjMnlULlG62zXNIBz9

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Видео eToro - What's The Most We Can Lose? - (Negative Balance Protection) канала Social Trading Vlog