⭐ Negative Balance Protection Forex Brokers

Negative Balance Protection prevents losses beyond available capital

  • Negative Balance Protection (NBP) stops traders from falling into debt with their Forex Brokers
  • During extreme & rapid price changes, when a conventional Margin Call was unable to liquidate trading positions in time, traders may end up with a negative account balance
  • Without a Negative Balance Protection, a trader must pay back to the Broker any amount owing
  • With a Negative Balance Protection, the debt is forgiven
Negative Balance Protection prevents losses beyond available capital ...read more
  • Negative Balance Protection (NBP) stops traders from falling into debt with their Forex Brokers
  • During extreme/rapid price changes, when a conventional Margin Call was unable to liquidate trading positions in time, traders may end up with a negative account balance
  • Without a Negative Balance Protection, a trader must pay back to the Broker any amount owing
  • With a Negative Balance Protection in place, the debt is forgiven

Compare Negative Balance Protection Forex Brokers

  • Broker
  • Type
  • Country
  • Regulation
  • Min Deposit
  • NB Protection
  • Leverage
  • Lot
  • Spread EURUSD
  • Commission
  • Margin Call
  • Popularity
  • Journal
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* EURUSD Spread as low as
** Commission per standard lot Round Turn

Is Negative Balance Protection guaranteed?

Unfortunately, not always. It's not all "black and white" with the Negative Balance Protection policies.
Some Forex brokers might guarantee it, while others only promise. What you'll read in the Client Agreeement, is that the Broker will forgive/cover the neagtive balance for traders based on own discretion and/or other conditions.

Negative Balance Protection vs Margin Call?

Both meant to protect Forex traders from a negative account balance.
Margin Call is the first line of defence. While Negative Balance Protection is the last &mdash when Margin Call fails to liquidate trades in time.
Margin Call prone to failing during highest market volatility, rapid & drastic price changes.
Negative Balance Protection is not dependent on market shifts. It's rather an aftermath feature (a gesture of a good will), offered by the Broker to reassure traders of safe & protected trading with this Broker.

Negative Balance Protection vs Guaranteed Stop Loss?

Both help traders to prevent major losses while trading Forex.
Guaranteed Stop Loss is a unique feature that's only possible with Market Makers.
This is due to the fact that a Forex Broker has to agree to absorb themselves all risks of a possible price slippage & gaps.
Guaranteed Stop Loss isn't a free feature. It comes with a premium to be paid once the stop is triggered.

Negative Balance Protection comes into play when a Stop Loss has failed, plus a subsequent Margin Call wasn't enough to prevent an account from going into a negative territory.
Negative Balance Protection will "wipe out" all negative balance numbers, leaving a trader with $0 account balance, yet debt-free!

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