From what you're saying, the ultimate risk is account closure.
So, if the trader's forex account has an equity of $10,000 - the trader risks losing this $10,000 in the worst case scenario - the blackest of black swan melt downs - that goes against the trader's positions.
But, given the leverage (and despite the trader's best efforts to set reasonably tight stops) - can the risk extend beyond that $10,000 equity ... i.e., can the trader lose their house and everything else they own, for instance (in the bleakest scenario)?
I don't mean to scare anyone.
I also have another question.... regarding trading performance.
I'll start another thread.
