You can be liable for the entire amount you leveraged, if that's your actual question...so if the $100K you are "controlling" goes to $50K, even though you only initially spent $1,000, YOU are responsible for coming up with the other $49,000...

Forex is a dumb way to try to profit...it's essentially a "zero-sum" proposition....the ONLY way for you to make any money is for someone else to LOSE that money...

That all depends on how good of a trader you are. If you don't know how to trade properly you could lose a lot of money, but if you use proper money management techniques and stop losses you can limit the amount of money that you lose. My advice to you would be to read! read! read! educate yourself on how the market works, then open up a paper trading account at a reputable dealer and start paper trading to see if you have the personality for trading, see if you can get a few winning trades under your belt, because if you can't win any trades paper trading it wont be much better with a real account. Hope this helps.

Hi,

I understand that Forex is highly leveraged. For someone who knows or trades Forex, for $1000 you control $100K of currency. What is the most you can lose if you make a bad trade, your initial $1000 or more($100K???) Thanks in advance.