Negative Balance Protection
Forex trading is subjected to higher volatility in the market. Our policy of negative balance protection ensures that your account will never go below zero.
What is Negative Balance Protection?
Negative balance protection is a good facility offered by a number of forex brokers, that safeguards traders against losing funds exceeding their deposits. Using negative balance protection, a investor cannot lose anything over what he owns in his account.
When choosing a broker for your Forex trading, always understand what negative balance protection they provide, if any. While some brokers decline to offers this protection to traders, others offer unrestricted protection to all of their traders. Here at Magni Markets we offer full negative balance protection to all clients
Benefits of Negative Balance Protection
01
Helps Traders Manage Risk
Negative balance protection effectively is a stop loss on your investments, limiting your potential losses to the number of capital you’ve placed within the account. The profit potential isn’t eliminated, so you don’t need to loose possible earnings to require advantage of a negative balance safeguard.
Protects market Inconsistency
Forex could be a large, international marketplace that’s sensitive to changes in global sentiment and international events. By nature, its volatility is larger than in other, smaller markets. Given this increased risk, traders like access to safeguards like negative balance protection.
02
03
Prevents further losses
The negative protection balance function prevents traders to lose over what they need. It factors in substantial market changes that may cripple traders.
Assistance for the panic trading period
Without a foolproof limitation on trades, beginners would be under huge pressure while creating orders. The flexibility to lose far more than what you have got in your balance is a dangerous situation. The negative protection balance feature allows them to freely test out their strategies with a tiny low amount of funds.
04
05
Unpayable debts can be prevented
Without a safeguard in place to prevent your losses on a holding, traders must rely upon themselves to trace market movement and pull their funds before their losses place them in debt with the broker. In some cases, even a vigilant eye might not be enough. When the market moves quickly, traders may struggle to require action fast enough to avoid an account balance drop into the red.
Promotes Trader’s Success
When a broker offers guaranteed negative balance protection, it indicates that they’re investing in your success. This makes them a more loyal partner in using Forex trading strategies to obtain prosperity over time.