Negative Balance Protection ensures that you never lose more money than you have deposited into your trading account due. If an order experiences a stop out that would result in a negative balance for the trading account, it will be restored to 0.
Simply wait for the automatic reset to zero, typically immediately after stop out, and you’re free to top out for trading account without losing anything.
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.
Create a ticket in the support hub for assistance to recover the balance lost in the event you deposit money into a trading account with a negative balance.
We strongly recommend waiting until the negative balance is reset to 0 (in a process called a null operation), which will be listed as D-null in any trading platform history. Null operations are only possible if all orders on a trading account are closed by stop out and the trading account balance is negative; it is an automatic process that cannot be manually activated.
Null operations do not disable the trading account and they can be used to trade again after funds are deposited.
If you must continue trading before the null operation is complete, it is best to create a new trading account to trade with, rather than risking a loss of 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.