krissl replies to: Risk-free trade with the help of ESMA?

I read on the Internet (on a French website) about side effects from the ESMA ruling, in particular reg. the negative balance protection (NBP):
Because losses on an account are limited (balance), but gains are not limited,
traders can open two opposite trades with max leverage in two accounts or at two brokers with NBP (same initial balance).
One would need about 300 pips to blow up the one account, while the other at the same time can gain more –
it is not a zero-sum game anymore.
All there is needed, is a move beyond that threshold level (i.e. big news, highly volatile cross).
Can this work?

Leave a Reply

Your email address will not be published. Required fields are marked *