Negative Balance Protection (NBP) is a risk management feature designed to prevent your trading account balance from falling below zero.
If your account balance becomes negative after a Stop Out, the negative balance may be adjusted back to zero in accordance with applicable policies. This means you will not be required to deposit additional funds to cover the negative balance.
Example
If your account balance is $100 and your open positions are closed due to Stop Out, resulting in a total loss of $150, your account balance would become -$50.
With Negative Balance Protection, the negative balance will be adjusted to $0.
Important Notes
- Negative Balance Protection applies only to losses that result in a negative account balance.
- It does not prevent losses from occurring during trading.
- Clients should always practise proper risk management when trading leveraged products.