Negative Balance Protection is an automatic safety feature on your Tradin account. It ensures that you cannot lose more than the funds in your account, keeping your balance at zero at minimum. With Tradin, you will never owe money because of a single trade.
How It Works
During extreme market movements, leveraged trades can grow losses faster than your account balance. Negative Balance Protection automatically resets your balance to zero if losses exceed your funds, absorbing the extra loss on Tradin’s side.
| Scenario | Account Balance | Trade Loss | Outcome |
| Normal Market Move | $500 | $200 | Remaining Balance: $300 |
| Extreme Market Move | $500 | $600 | Balance reset to $0 (Negative Balance Protection activates) |
This table shows that even if the market moves against you more than your account balance, you cannot go into negative balance.
Why It Matters
Leverage amplifies potential profits and losses. Without Negative Balance Protection, rare but extreme market events could leave your account in debt. This feature eliminates that risk, giving you peace of mind that the most you can lose is the money you deposited.
IMPORTANT:
Negative Balance Protection is active automatically for all Tradin clients. There is no action needed, it applies from your very first trade, ensuring a safe trading environment.
