Negative balance protection
Negative balance protection means you cannot lose more than the money in your account, even when a gap jumps past your liquidation price. On isolated margin the most you can lose on a position is the margin posted to it, which is how the Mochatrade support pages describe it; where the shortfall goes is a Module 3 question.
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In the help centreSee how leverage and margin work on MochatradeRelated terms
- Isolated marginIsolated margin ties a fixed amount of margin to one position, so that position can only lose what you gave it and the…
- Liquidation priceThe liquidation price is where the venue closes your leveraged position, computed from entry, leverage and margin…
- Initial margin vs maintenance marginInitial margin is the deposit to open a position; maintenance margin is the floor your account must stay above to keep…
- Liquidation / forced square-offLiquidation, or forced square-off, is the venue closing a leveraged position because the margin can no longer cover…
- Margin callA margin call is a broker's demand for more funds when your account falls below the required margin; ignore it and…
- Auto-deleveraging (ADL)Auto-deleveraging is the last step when a liquidated position's loss exceeds its margin and the insurance pool: the…
Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.