Goflexeo employs a suite of automated risk management tools to monitor your account in real-time, safeguarding your balance from going below zero. Negative Balance Protection is included as a standard feature on all account types at no additional cost to you.
When combined with other risk management tools, it enhances traders' ability to control their risks more effectively.
This means your losses cannot exceed your invested capital, which is crucial, especially for novice traders who may not fully grasp the rapid movements of volatile markets. While high volatility often presents opportunities, it can also move the market against your positions. In such scenarios, Negative Balance Protection (NBP) ensures that your balance remains positive.
Two main security features keep your account from going into negative balance.
Margin Call: If the market moves against your positions and your margin level reaches 100%, we will send you a margin call notification. This alert indicates that your positions are at risk due to insufficient margin and prompts you to take action. You can either add more funds to maintain your positions or close, or partially close, your positions to prevent further losses.
Close-Out: If the market continues to move against you and your margin level falls to 50%, our trading platform will begin closing your losing positions to prevent your account balance from going negative.
Yes, while rare, it is possible. Trading leveraged financial products in highly volatile markets or during sharp market movements can occasionally lead to a negative account balance, even with Negative Balance Protection and margin close-out processes in place. If your account balance does go negative, here's what you need to know.
If your account balance ever goes negative, Goflexeo will offset the deficit. We will reset your balance to zero, and you will not be required to cover the shortfall from your own funds. This policy applies to each trading account individually and does not aggregate across all accounts you hold with Goflexeo.