Source: ForexYard
Negative balance protection is also termed Margin Call. A Margin Call is a possible event in which a trader possesses losing positions that put him on the verge of entering a negative balance in his Forex account. In order to prevent such a turn of events, a margin call occurs. This is where all of the trader’s open positions are being automatically closed, thus preventing him from entering into debt.
Negative balance protection:
You’ll never have to face a debit balance (negative balance) when you trade with ForexYard. If your equity falls below your margin requirement, our ForexYard Trading Station will automatically close out your positions — think of this as a final stop order, always working for your protection. Our margin policy eliminates concerns about debit balances (negative balances) by guaranteeing that your risk is limited to only those funds you have deposited into your account.
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Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
