Do you offer negative balance protection? Can I lose more money than I deposit with you?

Article ID: 98926  

Question
Do you offer negative balance protection?

Answer

Using a lot of leverage has an inherent risk of losing more money than was initially deposited into a trading account. This can result in a negative balance, but fear not, we are not going to send collections agencies after you or engage in any legal actions to recover our money.


We operate with a no debit balance guarantee. What this means is that if your losses become too large, we will automatically close some or all of your open positions at the best available price, before your account becomes negative. This safeguard mechanism may not always work as intended and under extraordinary circumstances your account balance may actually slip into negative territory.

 

Should this happen and you have funds in different accounts, according to our Client Agreement, we have right to aggregate funds on other accounts to offset the negative balance. Otherwise, we will simply zero out your account balance. In other words, you can never owe us money if your account balance turns negative.


Article Details
Views: 578 Created on: Mar 12, 2019