Negative balance protection is a feature we offer where even if a trade results in a negative balance for a trading account, the negative amount owed is dissolved and the trading account’s balance is reset to zero.
For example, let’s imagine a trader with a trading account balance of USD 50 that closes an order that lost USD 100 overnight. Without negative balance protection, they would have to deposit USD 50 to reset their balance to zero and reactivate the trading account. However, with negative balance protection we reset the balance to zero without the trader needing to cover the loss with their own money.
Negative balance protection ensures that no matter how much loss a trader experiences, they will never owe money; losses are limited only to the trading account’s balance, and no more.
Part of what Exness does is provide these features to build sustainable, long-term relationships with traders. As we only profit from the spreads of trades, there is no benefit to anyone as we do not profit from the loss of our traders.