What is negative balance protection?

1 min. readlast update: 11.27.2023

 

We offer a feature known as negative balance protection, which guarantees that even if a trade leads to a negative balance in a trading account, the amount owed is erased. The account balance is reset to zero.

To illustrate this, let's consider a scenario where a trader has a trading account balance of USD 50 and closes a trade that incurs an overnight loss of USD 100. In the absence of negative balance protection, the trader would need to deposit USD 50 to restore their balance to zero and reactivate their trading account. However, with negative balance protection in place, we reset the balance to zero without requiring the trader to cover the loss with their own funds.

The primary purpose of negative balance protection is to ensure that, regardless of the extent of trading losses, traders will never find themselves in debt; losses are confined solely to the balance in the trading account and no more.

At Tradingpro, we provide these features to foster sustainable, long-term relationships with traders. Our revenue is generated solely from the spreads on trades, and we do not benefit from our traders' losses.

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