Serhii Posted March 24, 2020 Share Posted March 24, 2020 Hello. Please, help me to understand: With the conditions: Open BUY (Long) position Leverage: x1 Initial Investment: 1,000 USD APPLE STOCK (AAPL) Ask rate: 250 USD Position: Open 4 units AAPL BUY If I set no stop loss, should this mean that I lose all 1000 USD only in the case, when AAPL stock will drop to 0 USD (what is almost unreal)? e. i. with such a buy position the stop margin will be 100% of the $1000 investment? Quote Link to comment Share on other sites More sharing options...
0 Sam Farrah Posted April 16, 2020 Share Posted April 16, 2020 Hi Serhii If Apple stock was to drop low enough to the point where you don't have enough margin in your account to cover your position then the broker will give you something called a margin call. They will either close your position immediately or ask you to deposit more funds into your account to cover the position. If you cannot cover it then the position will be closed by the broker. Quote Link to comment Share on other sites More sharing options...
0 Becky Lord Posted June 11, 2020 Share Posted June 11, 2020 Thanks for the question Serhii, Stop-loss restrictions protect your capital from sharp market swings. They are mandatory for all positions except real assets and cryptocurrencies. eToro allows you to raise the stop-loss order beyond the specified limits when the trade opens. In the event of an extension, part of your balance will go into the trade thanks to the broker’s Maintenance Margin feature. Even so, a stop loss is impossible with insufficient funds. Suppose you trade with $1000, and the stop-loss limit stands at the 50% allowed maximum. The trade will end when your position reaches $500. However, an extra $500 will be drawn from your account if you decide to stretch the order to 100%. This translates to a $1000 stop loss and $1500 invested total. The additional $500 makes the maintenance margin. Though they eliminate the hassle of checking your holdings every day, stop-loss measures may trigger unnecessary sales during temporary price movements. Quote Link to comment Share on other sites More sharing options...
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Serhii
Hello. Please, help me to understand:
With the conditions:
If I set no stop loss, should this mean that I lose all 1000 USD only in the case, when AAPL stock will drop to 0 USD (what is almost unreal)?
e. i. with such a buy position the stop margin will be 100% of the $1000 investment?
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