Good evening,
some broker offer negative balance protection (NBP), some not. Its a nice thing, you cant loose more than your deposit.
I detected some trading strategies where you build on the fact, that the negative balance protection covers your loss, for example if you speculate on index over night gaps when there is a long break between the trading sessions (22:00 to 09:00), and the opening could be 1% or more higher or lower than the close, so you would provoke more or less this NBP many times, each time you speculate on such an overnight gap.
Could it happen, or does someone know if it happened allready, that the broker makes problems when he realizes that a customer uses this instrument intentionally and constantly in his trading?
some broker offer negative balance protection (NBP), some not. Its a nice thing, you cant loose more than your deposit.
I detected some trading strategies where you build on the fact, that the negative balance protection covers your loss, for example if you speculate on index over night gaps when there is a long break between the trading sessions (22:00 to 09:00), and the opening could be 1% or more higher or lower than the close, so you would provoke more or less this NBP many times, each time you speculate on such an overnight gap.
Could it happen, or does someone know if it happened allready, that the broker makes problems when he realizes that a customer uses this instrument intentionally and constantly in his trading?