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Tradin®

Negative balance protection

In short

Your account cannot fall below zero. If losses exceed the money in it, the balance is reset to zero and Tradin absorbs the difference.

Negative balance protection is an automatic safety feature on your account. It means you cannot lose more than the funds in it, and you will never owe money because of a trade.

How it works

During extreme market movements, leveraged trades can grow losses faster than your balance. Negative balance protection resets your balance to zero if losses exceed your funds, and Tradin absorbs the extra loss.

Scenario Account balance Trade loss Outcome
Normal market move 500 US dollars 200 US dollars 300 US dollars remaining
Extreme market move 500 US dollars 600 US dollars Balance reset to zero, protection activates

Why it matters

Leverage amplifies both profits and losses. Without this feature, rare but extreme market events could leave your account in debt. It removes that risk entirely: the most you can lose is the money you deposited.

How it works alongside a stop out

Two safeguards work together. The stop out closes positions when your margin level reaches your account threshold, which usually leaves something behind. If a market moves so fast that the account still ends up below zero, this protection brings it back to zero.

There is nothing to switch on. Negative balance protection is active automatically for every Tradin customer, from your very first trade.

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