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Negative Balance Protection Explained

2:50 · 8 chapters · Forex lessons, part 97

What you'll learn

Can a bad trade leave you owing your broker? Negative balance protection caps the loss at your deposit. Here's who requires it and how to check you have it.

Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.

Key point 1
How a stop-out can fill past your margin in a fast market or weekend gap
Key point 2
What changes with and without negative balance protection
Key point 3
Why it is mandatory for retail clients under the FCA, ESMA rules and ASIC
Key point 4
Why it applies per company, not per broker brand
Key point 5
What it does not cover, and how to check your own account

Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.

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The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.

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