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Negative Balance Protection
KVB Got You Covered with Negative Balance Protection
What is Negative Balance Protection?
Negative Balance Protection means that your trading losses cannot exceed the funds on your account and protects retail clients' accounts.
While protecting you against market movements that may cause you to lose all your funds, it also ensures your losses cannot exceed the funds on your account. In other words, market turbulences will not affect you as hard.
Negative Balance Protection helps you by ensuring your account balance does not go below the amount you deposit, but note that sometimes the market opens a gap up or a gap down which will trigger account stop even with negative equity. Therefore, even if you lose all your funds on your account, you will not owe money to us.
It is important to keep in mind that CFDs possess the risk of losing money rapidly due to leverage, hence proper risk management is recommended to all clients.
Advantages of Negative Balance Protection
Negative Balance Protection provides a safety net for traders who are new to CFD and margin trading. Volatility, combined with leverage may cause new traders to lose their money.
Negative balance protection also helps traders manage volatility better and take advantage of it. When managed properly, volatility can offer limitless trading opportunities. However, it can also be dangerous for inexperienced traders. This is why Negative Balance Protection is important. Yet, not all brokers provide it to their clients.
At KVB, we are dedicated to providing you with a secure trading environment. Because we are traders just like you and we know that sometimes things may not go as expected in the financial markets. You may find yourself on a losing streak. While it is unpleasant without a doubt, losses are a part of trading. With proper risk management methods and a reliable broker on your side, you will be more confident in the vast financial markets!
We've got you covered.
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