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Negative Balance Protection

Risk Management

A broker guarantee that you can never lose more than your account balance, even if the market gaps sharply against a leveraged position.

Negative balance protection guarantees that a trader can never lose more than the funds in their trading account, even during extreme market volatility that causes losses to exceed the account balance. Without this protection, a sudden price gap — such as during a flash crash or an unexpected central-bank announcement — could leave a leveraged trader owing the broker money beyond their deposit. Regulators including the FCA and ESMA require it for retail clients trading CFDs, making it an important factor to verify when choosing a broker.

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