Hi FF;
today a friend of me warned me to not trade with a broker on high leverage if they do not guarantee to zero the account if a negative balance occours.
So i just checked my broker, and indeed if for any reason (i took the flash crash as example) my account drops negative they will not set it to zero.
I took a fast look arround and most brokers are very vague on this topic.
The only one i found adhoc that states clearly that the account would be set to zero is forex.com.
So are you aware of any other brokers who guarantee that there will be never a negative balance on my account?
PS: im not solely interested in forex, so just show me what you got.
regards,
knoxxxalot
today a friend of me warned me to not trade with a broker on high leverage if they do not guarantee to zero the account if a negative balance occours.
So i just checked my broker, and indeed if for any reason (i took the flash crash as example) my account drops negative they will not set it to zero.
I took a fast look arround and most brokers are very vague on this topic.
The only one i found adhoc that states clearly that the account would be set to zero is forex.com.
QuoteDislikedNegative Balance Protection
In addition to our 100% maintenance margin requirement, our trading system continuously monitors required margin on your account and will liquidate some/all of your open positions should your account balance fall below the required margin.
These policies and procedures are in place to help to ensure you don’t lose more money than you deposit. However, as an added safeguard, we offer Negative Balance protection and will credit your account to a zero balance if your account goes into negative equity as a result of a liquidation event. This policy protects you up to 50,000 of the base currency of your account.
PS: im not solely interested in forex, so just show me what you got.
regards,
knoxxxalot