Negative Balance Protection ensures that you never lose more money than you have deposited into your trading account. If an order triggers a stop-out that would result in a negative balance, your account will be automatically restored to zero.
Simply wait for the automatic reset to zero, which typically occurs within an hour after the stop-out, and you are free to top up your trading account without losing any additional funds.
Example: A trading account with a balance of 100 USD has orders closed by stop out with a loss of 150 USD, resulting in a negative balance of -50 USD. Negative Balance Protection resets the balance to 0 USD, saving 50 USD in loss.
What happens if I deposit money into a trading account with a negative balance?
We strongly recommend waiting until the negative balance is automatically reset to 0 by our system, which typically occurs within an hour after the stop-out. Depositing money into an account with negative balance will result in a loss of balance.
If you must continue trading before the automatic negative balance reset is completed, it is best to create a new trading account to trade with, rather than risking a loss of balance.
What happens if I deposit money into a trading account with negative equity but positive balance?
When money is deposited into a trading account with negative equity but positive balance (possible with open orders), the negative equity is not covered by Negative Balance Protection and the difference will be deducted from the deposit.
Example: You have a balance of 1,000 USD with fully hedged open trades.
– 1 lot buy and 1 lot sell on XAUUSD
– The net result of this hedged order is -1,050 USD
– Current equity = -50 USD
Typically stop out happens when equity drops below zero. However with Stop Out Protection active, stop out can be delayed. This results in a positive balance amount (1,000 USD) with negative current equity (-50 USD). If you deposit 100 USD while this hedged order remains open, a null operation will not have occurred as it requires all orders to close by stop out before it initiates. So the new balance (1,100 USD) results in a current equity of 50 USD (1,100 USD – 1,050 USD = 50 USD) and a loss of 50 USD balance.