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Costs & risk

Negative balance protection

Negative balance protection means a client's losses cannot take the account below zero. NextTrade offers negative balance protection on all retail accounts, meaning clients cannot lose more than the funds available in their trading account.

Also called: NBP, negative balance

Hypothetical example

Hypothetically, a retail account holds $300 and a sudden price gap closes a position at a loss of $350. Without protection, the balance would be $50 negative; with negative balance protection it is reset to zero. The whole $300 is still lost.

Used in these guides

Costs & risk8 min read
Margin call and stop out: how they work
How margin level is calculated, when a margin call or a stop out happens, and what each one does to your open positions.
Basics7 min read
What is a CFD (contract for difference)?
How a contract for difference works, what it costs, and why leverage makes it a high-risk product.

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