Forex Dictionary Terms

Blow Up The Account

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Definition – What does Blow Up The Account mean?

Blow up the account is a slang term for losing all of the capital in a trading account. The reasons behind blowing up an account are many, but a majority of account blow ups are probably a result of too much leverage and too little planning.

ForexTerms explains Blow Up The Account

Blowing up your account is not the end of the world. Traders, especially beginning traders, usually start with limited capital and a poor understanding of risk management. Add in the ability to leverage up the capital to five, 10 and 20 times, and you have all the elements needed to blow up your account real good. The important thing is that a trader learns quickly why their account blew up and what to do differently next time.

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