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 Mochatrade
  • 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.

Where it comes up