I've noticed that Forex.com states on there main webpages:
Negative Balance Protection
I've talked with them to confirm and they said in case of or gap they gaurantee 0 bal. and if any such gap would occur that you would not be liable for any negative balance.
Anyhow I'm not sure how many companies offer this I was wondering if any of you knew if there were others out there that offer this as well.
Also I noticed that some companies in the terms specifically identify that they can contact you to pay for the negative. Other companies do not even mention this in the policy etc.
I'm wondering if it's not mentioned in the term/policy would you be liable for any negative balance etc. ?
And if it is mentioned in the terms/policy are you liable for any negative balance ?
I don't plan on a negative balance, but I think i'ts a good selling point for forex.com to new traders who are concerned about this subject ?
Please advise if anyone knows about this subject or any other companies that offer negative balance protection.
Results 1 to 10 of 11
10-15-2008, 06:16 AM #1
Negative account balance protection ?
Last edited by Agent86; 10-15-2008 at 06:19 AM.
10-15-2008, 07:08 AM #2
In theory, any good brokerage should give you abefore you go negative. Most agreements are structure to leave at least a small positive balance. Of course, a big or a price gap over a weekend could wreck your account and leave you negative if you were getting close to a .
If you were trading correctly, you should never use so much of your available margin that there's any chance of a . Proper risk management involves not only limiting the total percentage of your account risked per trade, but also the total risked at any one time.
10-17-2008, 04:28 AM #3
10-21-2008, 11:48 AM #4
10-21-2008, 06:17 PM #5
Margin Call is normal isn't it
Hi I thought typically all the brokers had a margin /if your account falls below the margin requirements.
So typically your account should be margin called if you don't have the margin to keep the position open, however in the case of a gap your account could not only be margin called but actually mis the and go below your account balance in which case you would then be required to pay any negative balance. I understand this is most concerning if your account is low or at the min. margin already, however forex.com has a negative balance protection policy which in a case of a gap which could cause negative balance if the does not close all position, then you would not be required to pay any negative balances thats all.
I don't really know if thats good or not, but it sounds good to new traders that may be starting with min. balances etc.
But regarding the I believe this is typical for all brokers which require a margin you can just trade with no money in the account and the margin protects them if you risk more then your account balance hence the margin. At least thats how I understand it.
Thanks for the replies
10-22-2008, 02:53 PM #6
It really comes down to risk management. You shouldn't leave large trades open over the weekend until you've learned how your broker deals with price gaps, and should always use stoplosses that will close trades long before a.
Sure, you use every bit of that leverage and live 30 pips from a and make a lot more money on good trades, but one little mistake or surprise widening of spreads, and all the money goes away in the blink of an eye.
The first thing in your mind before you pull the should be "can I afford it if this trade goes bad?" The second questions should be "What if every trade I have open goes bad?". How much of your account are you willing to lose if your internet connection drops for 30 seconds and there's another fiscal surprise?
Overall, I prefer a broker that guarantees I can't go negative, but my risk management should prevent that from every happening as long as my are honored to a reasonable degree.
01-19-2015, 02:38 AM #7
Well this stuff became a bit more important to me after thedecission of cutting ties with EUR so suddenly and leaving 1.20 unprotected.
Im not a typical risk taker, but a gap of over 1k pips and a a total of 1900 pips or what it was would be able to take my account to the negative side, in chaotic conditions like that when liquity is a huge problem and price beeing unavailible.
With no other chooise than holding the falling knife negative equity protection would been of benefit. I cant imagine loosing all my funds but also going int to debt what a terrible situation. What are traders toughts on this'? is there a list of brokers with negative equity protection?
I guess only market makers would offer it.
FXpro has it
01-19-2015, 08:12 AM #8
01-19-2015, 07:07 PM #9
01-20-2015, 01:01 AM #10
Use SL and TP as you did that before and it should work normally within a range of average for our broker. The other thing is when your broker has bad LP feed and charges you too much. Good reason to think about changes.
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