The maximum loss is literally unlimited while you are investing in Forex.

But with recent FX brokers, it is possible to limit your loss with their service conditions, and at the same time, leave your potential profit to unlimited.

Stop Out(Liquidation)

Stop Out is set by your broker, and it triggers automatically to avoid further losses when your positions are causing larger loss than your fund can support.

It is also called “Liquidation”, and most of the cases, this prevents from having exceeded loss in your trading account.

NBP(Negative Balance Protection)

Some brokers still do not support NBP, but it is becoming a standard condition for online FX brokers recently.

NBP makes sure that you won’t lose more than you have deposited to your account, thus the maximum loss is limited to your account balance.

NBP simply covers the exceeded losses when your account has debit(minus balance) and fixes the balance to zero.