What it does
Negative balance protection is a feature that prevents your account equity from falling below zero, even after a sharp, gapped price move.
Without it, extreme volatility could in theory leave you owing more than your deposit.
Where it applies
In some regions, retail accounts are required by regulation to have negative balance protection. Elsewhere it is a broker policy that varies by provider and account type.
It is most relevant for leveraged products, where a small move can have a large effect on equity.
- Required in some retail regimes
- Optional elsewhere
- Most relevant with leverage
Read the fine print
Check whether protection applies to all account types, only retail, and whether it covers technical failures or only market gaps.
Pair it with sensible position sizing using the Position Size Calculator to avoid stressful situations in the first place.
Protection reduces a worst-case outcome but does not prevent losses. Risk management is still your responsibility.
Frequently asked questions
Does negative balance protection mean I cannot lose money?
No. You can still lose your deposit. The protection only aims to stop losses from exceeding the deposited amount.
Does it apply to professional accounts?
Often not. Professional or elective classifications may waive retail protections, so confirm the terms.