Negative Balance Protection
At DefcoFX, our utmost priority is to enhance your trading experience. We offer negative balance protection to all our clients, ensuring that your losses are limited to your initial investment. In the event of a negative balance due to a Stop Out, DefcoFX will compensate the amount and reset your account balance to zero.
User
Can I exceed my initial deposit in losses? What happens if my account balance goes negative?
Admin
DefcoFX provides negative balance protection, ensuring that if your balance goes negative, we automatically reset it to zero.
Debt
prevention
No losses
beyond initial
deposit
Resets back
to zero
automatically
DefcoFX assures that your risk is confined to the funds deposited in your account. It’s important to understand that negative balance protection does not cover any debt payments from the client. This means our clients are safeguarded from losses exceeding their initial deposit.
In times of significant economic events or sudden market movements that can impact asset values, account balances may become negative. High volatility and price gaps can lead to equity losses for customers. DefcoFx compensates by resetting the account balance to zero.
To avoid your account going into negative balance, consider these preventive measures:
Set your
Stop Loss
Use leverage
responsibly
Take care of your
trading volumes