Negative balance protection
a.k.a. NBP
A broker promise that you can't lose more than the money in your account, even if the market gaps past…
In plain English
A broker promise that you can't lose more than the money in your account, even if the market gaps past your stop.
With leverage, a violent gap can blow straight through your stop-loss and leave your account below zero: you'd owe the broker money. Negative balance protection means the broker wipes that debt and resets you to zero.
Some regulators require it for retail traders, but not everywhere, so it's worth checking your broker's terms before you trade with leverage.
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