Negative balance protection Trade FX and CFDs with peace of mind. Never lose more than what you deposited, no matter what the market conditions. ThinkMarkets > About us > Negative balance protection Negative balance protection explained Here we explain what negative balance protection means for your funds and why you should care. Trading example Let’s say that you deposit A$2000 and go long the AFTERPAY share with 5:1 leverage. The value of your position is $10,000. An unexpected market event causes the price to drop rapidly by 8% beyond your margin call close out level. You suffer a 30% loss due to leverage, meaning a total loss of A$3000. Scenario A Broker WITHOUT negative balance protection If you place this trade with a broker that doesn’t offer negative balance protection, you will owe A$1000. The broker has the right to take action against you in order to collect the amount owed. Scenario B Broker WITH negative balance protection A broker who offers negative balance protection has risk management tools in place that prevent your account from going below zero. You will only lose your initial deposit and the broker will absorb the loss. Your account is protected with us At ThinkMarkets, we understand that no risk management rule can protect traders from extreme volatility during announcements, market openings and unexpected global events. That’s why we take the responsibility to protect your account* with ThinkMarkets from going negative. Get peace of mind Free of charge No opt-in required Create account *Not available for ThinkMarkets Pro account holders. Markets Forex Share CFDs Indices CFDs Precious Metals Commodities Cryptocurrency Contract Specifications Platforms All Platforms MetaTrader 5 MetaTrader 4 ThinkTrader Account Types Demo Account Standard Account Think Zero ThinkMarkets Pro Knowledge Base Market News Economic Calendar ThinkMarkets News FAQs Learn To Trade Articles for Traders Support Get in Touch Contact Us Partners Careers Derivatives Legal Documentation Shares Legal Documentation Privacy Policy 1300 390 515 Live chat support@thinkmarkets.com Risk Warning: Derivative products are leveraged products and can result in losses that exceed initial deposits. Please ensure you fully understand the risks and take care to manage your exposure and seek independent advice if necessary. It's important for you to consider relevant legal documents (Product Disclosure Statement, Target Market Determination, and Financial Services Guide) before you decide whether or not to acquire any of our products. When trading or investing in shares and ETFs, the value of such shares and ETFs can fall and rise, which means you could receive less than you originally paid. Please consider the risks involved before you trade or invest. Past performance is not a guarantee of future results. TF Global Markets (Aust) Pty Ltd is the holder of Australian Financial Services Licence (AFSL) number 424700. Registered address: Level 18, 357 Collins Street, Melbourne, VIC, Australia 3000. ABN: 69158361561. TF Global Markets Equities (Aust) Pty Limited is a Corporate Authorised Representative (No. 1280662 of Sanlam Private Wealth (AFS License No. 337927). Registered address: Level 18, 357 Collins Street, Melbourne, VIC, Australia 3000. ABN: 63636447099. This AFSL authorises us to provide our services to people or businesses that are located in Australia. The information on this site is not directed to residents of the United States, Canada, Japan and Russia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. © 2021 This website is owned and operated by ThinkMarkets Group.