One of the attractions of overseas forex trading is the ability to make large trades with a small amount of capital. Furthermore, using an overseas forex broker that has implemented a zero-cut system means that your margin will not go into negative territory. However, while your margin will not go into negative territory, there is still a possibility of incurring debt. This article will explain in detail the reasons and causes of incurring debt in overseas forex trading. In addition, we will introduce ways to avoid the risk of incurring debt and how to deal with it if you do incur debt, so if you want to "trade overseas forex without risk" or "avoid incurring debt from overseas forex trading," please refer to this article. If you are looking for a highly secure overseas FX broker, please also check out our ranking of popular and recommended overseas FX brokers based on actual customer reviews. Furthermore, we recommend that beginners in overseas FX read our complete guide for beginners. Contents 1. Reasons for incurring debt in FX 1.1 Margin calls due to failure to execute stop-loss orders 1.2 Repeatedly adding margin due to inability to cut losses 1.3 Trading with borrowed money from consumer finance companies or credit card loans 2. Why overseas FX is less likely to result in debt 2.1 Zero-cut system is implemented 2.2 Lower stop-loss levels compared to domestic FX 3. Reasons for incurring debt in overseas FX 3.1 Margin calls due to failure to execute the zero-cut system due to fraudulent trading 3.2 Repeatedly triggering zero-cut due to excessive high-leverage trading 4. How to avoid the risk of debt in overseas FX 4.1 Trade FX with surplus funds 4.2 Adjust leverage and lot size 4.3 Clearly set profit-taking and stop-loss lines 4.4 Check statements from key figures and economic indicators before trading 4.5 Create a trading plan that can withstand sudden market changes 4.6 5. How to deal with debt incurred through overseas FX trading 5.1 Pay it back immediately 5.2 Consult a lawyer for debt consolidation 6. Frequently asked questions about debt from overseas FX trading 6.1 What is the difference between domestic and overseas FX? 6.2 Are taxes incurred on overseas FX? 6.3 Will my company find out about my overseas FX profits? 6.4 How much can I increase 100,000 yen with FX? 6.5 Can I file for bankruptcy if I incur debt through overseas FX? 7. Summary Reasons for incurring debt through FX Here, we will explain in detail the reasons for incurring debt through FX. This applies to both domestic and overseas FX, so please refer to it if you are investing in FX. The reasons for incurring debt through FX are as follows: Stop-loss orders are not executed and margin calls occur The reason for incurring debt through FX is that stop-loss orders are not executed and margin calls occur. In FX, a "stop-loss" is executed, which forcibly closes positions when the margin falls below a certain level. This is a system to prevent the margin from going into the negative. However, in the event of rapid price fluctuations, stop-loss orders may not be executed at the correct price, and the stop-loss may not be executed in time. If the stop-loss is not executed in time and the margin goes into the negative, additional margin (margin call) will be required. Overseas FX brokers have a zero-cut system so no margin calls will occur, but domestic FX brokers will definitely issue margin calls, so caution is necessary. Repeatedly adding margin because you can't cut your losses One reason for incurring debt in FX is repeatedly adding margin because you can't cut your losses. In FX trading, if the price moves in a direction different from what you expected, if you continue to hold the position without cutting your losses, your losses will only increase. If losses increase while you continue to hold the position, you will have no choice but to deposit additional funds to avoid being stopped out. As a result of continuing to deposit additional funds, there is a risk that you will run out of funds and incur debt, so caution is necessary. The psychology of "I don't want to lose money" is at play, but it is important to set clear trading rules and invest accordingly. Trading with borrowed money from consumer finance companies or credit card companies Another reason for incurring debt in FX is trading with borrowed money from consumer finance companies or credit card companies. In FX trading, if you raise investment funds through consumer finance or credit card loans, you will be in debt. ... Continue reading What are the possibilities of incurring debt in overseas FX trading? We explain the reasons for incurring debt and how to avoid the risks.