TGM | 7 months ago
Trade Global Market is a leading online trading broker specialized to provide individuals and organizations with services in international financial markets. Trade Global Market offers round-the-clock trading with various currency pairs, as well as in Gold (Spot), Silver (Spot) and CFD as well as indices. It also offers extensive education and training services to International traders to help them understand the Currency market better.
Negative balance protection is a risk management tool that ensures traders do not lose more than the balance on their account – even if the market moves quickly. Trade Global Market offer Negative balance protection as a standard feature at no additional cost.
Let's say you deposit $1,000 to your account and you buy EUR/USD pair with 10:1 leverage. In this case, you will have a position of $10,000. Currency market hardly fluctuates much in a day that is why many forex brokers offer leverage.
If there is any good economic news regarding USD and EUR/USD pair price drops 1.5%, you will suffer a 15% loss due to your leverage. This is $1,500 loss in dollars as you have a position of $10,000. This loss will eat your $1,000 deposited money and a further $500 which you will owe to the broker. If you do this transaction at a broker which provides a negative balance protection, your loss can't be bigger than the deposited $1,000.
Negative balance protection helps traders to take advantage of trading sessions without having to worry about going into debt.
If the balance becomes negative due to stop out, any reputed forex broker will compensate the amount and adjust the account balance to zero.
Negative balance protection guarantees that a trader cannot lose funds more than deposited.
Whenever any significant economic events happen around the world, it creates a situation where the value of assets increase or decrease drastically. Negative balance protection helps traders during such events.
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Trade Global Market offer tight spreads, low-cost trading and deep liquidity prices. You can open a real account at Trade Global Market within few minutes and start trading instantaneously.
So, what are you waiting for?
Go ahead and apply a real account with Trade Global Market. Do not forget to bookmark our blog for daily and weekly market analysis. We will catch up again for the next market analysis.