CFD is FX and the mechanism itself is not may be said to be very similar, but it is forced loss cut Speaking of FX. The first place what it is is because loss cut, will the fact that although there are two on the implications manner.
loss cut, or act called Sonsetsu (stop loss) is to result in a settlement in order not to increase any more loss. Would confirm the loss, it is the act of. This is the loss cut of the type to do voluntarily.
However, it has a forced loss cut without the case. This is the case even FX. More than that a deal with absolutely leverage, if it falls below the margin, is not come with forced function to the loss cut. This is also on the CFD.
What are or wind to be loss cut h2> variety of loss cut of rules. If first a voluntary loss cut it is may be free. 5% or, people who have decided to rule on their own such as accidentally cut Once you reached 10% of the loss is large. Here are some of the also an important element, but the problem is forced loss cut to skilled in the art. In fact, it may also be different for each person. There is that the lowest margin retention rate, will be the warning comes out as less than this. Will receive a margin call, is often where then are also much and followed by the state forced loss cut, and. Whether this minimum consumption money maintenance rate from being forced to loss cut by how much because different by skilled in the art is not will differ by between skilled in the art. This point can be said to point should be sure to check in when the transaction.
horrible thing about this deal h2> FX is also can be said to such as, but not certainly always need only in the loss of margin anyway where horrible forced loss cut, is that. In short, it is there likely to be negative. The fund is zero, does not mean that, it is likely to be more negative. In the case of transactions to apply leverage let's realize that the possibility is always present. Loss cut itself is there any that should be always aware of any investment, but forced loss cut is also a lot of people will dent Margin as he finished with only somewhat eroded as a blessing in disguise. In short, had fullest wrong the direction of as an investment, is also a lot of people to lose confidence because you will be called. The result of a hundred battles you be one hundred wins does not need to fall in the extreme because it is impossible to be a professional of any investment in, but failed still am a lot people to respond to, in the first place will is out trouble in the next investment. More than that is multiplied by the leverage is unavoidable, but the return is also there can be large indeed, but let's understand properly be scary point.