Broker limits with "Negative balance protection"?

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?

In typical conditions, forex traders might experience a specific measure of misfortunes. Nonetheless, their balance could never down to a negative area either because of stopping misfortunes that were put by the actual traders or stop out a component that was set up by the brokers. In any case, the negative balance might happen in phenomenal conditions.

On a generally normal Thursday in January 2015, the Swiss National Bank abruptly rejected its money stake of 1.20 to the euro. This declaration transformed into a catastrophe of a huge extent for individuals who had recently sought after the CHF under an assumption of wellbeing and dependability. CHF traders represented a huge extent of those hardest hit. All the more explicitly, forex traders experienced negative balance in the fallout and their brokers came after them to gather the cash they owe.

Such a circumstance is intriguing, yet not difficult to happen again in a leveraged-trading climate. Subsequently, there are a lot of traders who try to know whether their own forex specialist will sue them for a negative balance. All things considered, who needs to confront a gigantic obligation with lawful activity on top of losing all of their cash in the market!?
Following the CHF-related Black Thursday, a few forex brokers rushed to promise their traders that they had laid out a " negative balance protection" strategy. Yet, this action was not taken by each forex specialist. Consequently, there are two kinds of replies to the topic of "will forex specialists sue us for negative balance?"; each for brokers with and without negative balance protection.

Thanks, today I was talking to a broker, and he exactly told me what I assumed : if a broker offers negative balance protection, it is for my security of funds to suffer no extential losses in cases of market turmoil. But he also said, and that's the main point , that no brokers likes to see a client who speculates on the fact that the broker always cover your negative balance. If someone trades such a style and uses several times a week such a negative balance protection, the broker will tell him that that's not what negative balance protection is for, and maybe they cancel account

Many brokerage companies promote negative balance protection as one of the most profitable and effective marketing ploys, which can actually be beneficial for the client or give some purely illusion of security. In any case, I think that it will be reasonable if you do not act too relaxed and you remember that everything that happens in the first place depends on you and you should not bring the situation to the point that you already have some serious problem. So do not relax, remember that the market can always bring some ambiguous surprises, and you should always be ready for this in order to save your funds.

Deposit of $ 100 on 2 accounts, 500 leverage, buy-sell at the same time before the market closes.

Gap, one account in a negative balance that is erased, the other a large profit.
it would be naive of a broker to allow it, possible until they notice.

hi sir, currently im using less than a 1:30 leverage and im using pepperstone. Tho they said they they do provide negative balance protection. However if a client is being considered misconduct and his negative balance may not be covered. Thing is im a a day trader, sometimes i do need to hold over red news (not including cpi, ppi, fomc, nfp). If some days there's a blackswan event right at the red news, does it mean that maybe im not really being protected?