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WHAT IS NEGATIVE BALANCE PROTECTION

WHAT IS NEGATIVE BALANCE PROTECTION

DVTAS offers you a set of risk management tools that help you protect your trade, ensures that its clients’ account balances won’t drop below zero.

Negative balance protection is a precautionary measure that brokerage firms take in order to safeguard their clients. Negative balance protection policy ensures that traders will not lose more money than deposited, if their account goes into negative as a result of their trading activity. This means that if a trader chooses a brokerage firm that offers negative balance protection, he won’t owe money to the firm because of a bad trading decision.

Since the Swiss franc crash in Jan 2015, the phrase ‘negative balance protection’ has become popular in the retail Forex markets.

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