Negative Balance Protection definition

Negative Balance Protection. CFDs which are leveraged products, incur a high level of risk and can result in the loss of all the client’s invested capital. However, it should be noted that the Company operates on a “negative balance protection” basis, which means that the Client cannot lose more than his/her overall investment per trading account. The Client accepts that the Company reserves the right to immediately terminate the Client’s access to the trading platform and recover any losses caused by the Client, in the event that the Company determines, at its sole discretion, that the Client voluntarily and/or involuntarily abuses the “negative balance protection” offered by the Company, by way of, but not limited to, hedging his/her exposure using his/her trading accounts, whether under the same profile or in connection with another client(s); and/or requesting withdrawal of funds, notwithstanding any of the provisions of this agreement, during a specific timeframe when the symbol he/she is trading is not available.”
Negative Balance Protection means the limit of a retail client's aggregate liability for all CFDs connected to a CFD trading account with a CFD provider to the funds in that CFD trading account.
Negative Balance Protection means that if you are a Retail Client and at any time you have a negative balance on your Account, we will waive our right to claim the deficit and will return the Account balance to zero, in accordance with the ASIC Product Intervention Order – Contract for Difference Instrument 2020/986 (Product Intervention Instrument) issued under section 1023D(3) of the Corporations Act. Where you have multiple Accounts with us, we may treat your Accounts as aggregated for the purposes of offsetting a negative balance, by using funds on one Account to offset losses incurred on another.

Examples of Negative Balance Protection in a sentence

  • We operate a Negative Balance Protection, i.e. you cannot lose more than the Equity of your trading account, however you risk losing the capital invested with us.

  • Because we provide Negative Balance Protection, this requires us to bring any negative balances onto our own balance sheet.


More Definitions of Negative Balance Protection

Negative Balance Protection means that in the unlikely event that any Retail Client(s)’ trading account(s)’ balance falls below zero (0), to a negative amount, whereby the Company will adjust the balance to zero (0), so guaranteeing that the Retail Client cannot lose any more funds than was originally deposited into the trading account(s);
Negative Balance Protection means the additional investor protection provided to Retail Clients and described at clause 13.6;
Negative Balance Protection means that the Client will never owe to the Company any amount in excess of the available funds in the account.
Negative Balance Protection means the limit of a Retail Client’s aggregate liability for all CFDs connected to a CFD trading account with a CFD provider to the funds in that CFD trading account, i.e. the Client shall not lose more than the total sum invested for trading CFDs and there can be no residual loss or obligation to provide additional funds beyond those in the Client’s Trading Account;
Negative Balance Protection means the Company's policy to credit accounts to a zero balance when debit balances occur (account’s balance becomes negative), as a result but not limited to, trading, stop-out, market gaps, etc. Negative balance protection ensures that clients cannot lose more than the funds they have invested.
Negative Balance Protection means an obligation on the part of Blueberry Markets to ensure that a Retail Client cannot lose more than what they have deposited in their Trading Account(s), in accordance with the ASIC Product Intervention Order – Contract for Difference Instrument 2020/986 (Product Intervention Instrument) issued under section 1023D(3) of the Corporations Act.
Negative Balance Protection. Means the limit of a client’s aggregate liability, for all CFDs connected to a trading Account with the Company, to the funds in that Account. Trading in leveraged Financial Instruments involves significant risk on your invested capital. However, LTI follows a Negative Balance Protection policy, on a per account basis, which aims to ensure that your maximum losses from trading CFDs, including all related costs, are limited to the total funds in your trading account (i.e., no additional liability incurs). This should include any funds yet to be paid into your account due to net profits from the closure of open trades connected to your tradingaccount. Notwithstanding the above, any indication or suspicion, in LTI’s reasonable discretion, of any form of arbitrage performed in your trading account either solely or in connection with other clients of our company (including but not limited to risk-free profiting), abuse (including but not limited to participant's trading activity patterns that indicate that the participant solely aims to benefit financially without being genuinely interested in trading in the markets and/or taking market risk), internal hedging in coordination with other parties and abuse of our ‘no negative balance’, constitute a violation of these Terms and Conditions. In such cases, we reserve the right, among others, NOT to apply our Negative Balance Protection policy and transfer any or all funds you may have in a different trading account to set-off the obligations (e.g., negative balance) that have occurred to the other account used for any abusive acts.