Negative Balance Protection
Dupoin Got You Covered with Negative Balance Protection
What is Negative Balance Protection?
Negative Balance Protection is a risk management feature provided to protect customer accounts so that losses from transactions will not exceed the funds in your account.
In addition to protecting you from market movements that could cause you to lose all your funds, as well as ensuring your losses do not exceed the funds in your account.
Negative Balance Protection helps you by ensuring your account balance doesn't drop below the amount you deposited, but keep in mind that sometimes the market opens gaps up or down that will trigger account termination even with negative equity. Therefore, even if you lose all the funds in your account, you will not owe us.
It is important to remember that futures trading carries the risk of losing funds rapidly due to leverage, therefore proper risk management is recommended for all clients.
Advantages of Negative Balance Protection
Negative Balance Protection provides a safety net for traders who are new to futures trading. Volatility, combined with leverage, can cause novice traders to lose their funds.
Negative balance protection also helps traders better manage volatility. When managed well, volatility can offer limitless trading opportunities. However, it can also be dangerous for less experienced traders. This is why Negative Balance Protection is important. However, not all brokers provide it to their clients.
At Dupoin, we are dedicated to providing you with a secure trading environment. Because we are traders just like you and we know that sometimes things may not go as expected in the financial markets. You may find yourself on a losing streak. While it is unpleasant without a doubt, losses are a part of trading. With proper risk management methods and a reliable broker on your side, you will be more confident in the vast financial markets!
We've got you covered.
