Negative Balance Protection

The interests of our clients is our primary objective and that is why with ActivTrades your balance will not go into negative.

The margin close out level on your account is in place to help ensure you do not lose more money than your deposit. As an added safeguard, we offer Balance Protection Policy and will credit your account to a zero balance if your account goes into negative as a result of trading activity.

The Balance Protection Policy applies across multiple accounts as well, therefore if you have a negative balance in your account and a credit balance in your second account then the credit balance will be used to offset the negative balance. This also applies to joint accounts, where each joint account holder will be responsible for a debit or credit available equally.

The balance protection is open to all retail clients.

Example of an Automatic Margin Close Out

You have €10,000 equity in your trading account and an open short EUR position against the USD of 5 lot (€500,000) at 1.1500. The margin close out level of your account is set by ActivTrades as 30% and your maximum permissible leverage at 1:50. Therefore your margin requirement for this trade is the full €10,000 of your equity.

The market unfortunately rises to 1.1650/1.1652, at this level your position is losing $7,600 (152 pips X $50 pip value) or €6,522.48. Your free equity now stands at €3,477.52. If the market rises 11 more pips to 1.1663/1.1665 then your losses would increase to €7,072.43 and your balance decrease to €2,927.57. At this point you no longer hold the minimum of 30% equity of your margin requirement and your position is closed out at 1.4901. Your remaining equity balance falls to €2,927.57.