Futures questions, answered

Can you lose more than you invest in futures?

Short answer

Yes. The risk disclosure that the CFTC requires brokers to give you says you can lose all the money you deposit, and you may incur losses beyond these amounts. If your account goes below zero, you owe your broker the deficit. Small size and a stop on every trade reduce this risk, but they do not remove it.

How can a loss be bigger than my account?

Futures use leverage. A small deposit controls a large amount of value, so a big price move can cost more than the cash in your account.

Losses can grow fast when price gaps past your stop, for example after a big report or over a weekend. A stop order becomes a market order when it is hit, so in a fast market it can fill well past your stop price.

What does the broker do when my account runs low?

Your broker can ask you to add margin on short notice. If you do not, the broker can close your position at a loss, and you are still liable for any deficit.

That is what the CFTC disclosure says. Futures 101, Lesson 2, shows how daily settlement moves your account.

Does a stop loss protect me?

Mostly, but not always. A stop can fill worse than its price when the market jumps or gaps. Treat your stop as a plan, not a promise.

Is it the same in a prop firm evaluation?

No. In a prop firm evaluation you trade the firm's account, so what you can lose is the fee you paid. You do not owe a deficit.

Read the firm's rules to be sure. Prop Firms 101 explains how evaluations work.

Common mistakes

Thinking margin is the most you can lose.
Holding a large position over a weekend or through a big report.
Adding to a losing trade to make it back.

Sources

Last reviewed: 2026-10-16

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Mahalo for reading and trade well!
Glenn & Reid | Hawaiʻi Trading Academy

Risk disclaimer: Education only. Not financial advice. Trading futures involves substantial risk of loss. Futures are not suitable for every investor, and you can lose more than your initial deposit. Examples on this page use made-up numbers to teach the math. Past performance does not guarantee future results. Hawaiʻi Trading Academy provides education only. We are not financial advisors, and nothing on this page is a recommendation to buy or sell any financial product. HTA is not affiliated with CME Group or any exchange or agency named here. Times, rules and dates can change; check the source before you trade.