Forgive the naivety of these questions.
I understand that using leverage can wipe out my account, and have two questions if anyone can answer these questions:
(1) Let’s say that I make a large loss using leverage and don’t have enough money in my CFD account to cover that loss… can Trading212 take the funds from my Invest account? Not sure how that works.
(2). Can leverage be turned off and not used for trades?
Any helpful replies greatly appreciated.
They don’t take funds from Invest.
Also as a retail trader you are protected from negative balance.
Hey,
Not under any circumstances, your Invest funds are going to be used to cover your huge lossеs accumulated in the CFD account. For retail traders, we have a negative balance protection policy which nullifies your account in case of an enormous loss leading to a negative account balance.
No, leverage can’t be turned on/off.
Just to clarify this point for new users. Yes leverage cannot be turned of for CFD account, but it does not exist in Invest and/or ISA account so no worries there.