NEGATIVE BALANCE PROTECTION
A STANDARD FEATURE ON ALL SINOXFX ACCOUNTS
SINOXFX offers you a set of risk management tools that help you protect your trade, your account and funds. Negative balance protection ensures that your account will never go below zero, a protection SINOXFX has offered as a standard feature at no additional cost since 2016.
The benefits of negative balance protection
Negative balance protection means that even if markets move rapidly against your trades, your account will not be negative. This is especially important to new traders that may not be familiar with how rapidly markets move during announcements, market openings or general market volatility.
This, in combination with the other risk management tools SINOXFX offers including dealCancellation* and Freeze Rate give traders the ability to better control their risk when on the market.
Negative balance protection ensures that traders with losing positions don’t end up with a negative balance in their forex trading account. If you find yourself in a bad trade and are losing money fast, a margin call can save you from going into debt. Simply put, a margin call automatically closes your rapidly dropping open positions.
In today’s complexding environment, negative balance protection can help traders manage volatility and take advantage of high-volume trading sessions without having to worry about going into debt. After all, most traders would agree that low volatility isn’t ideal when trading retail forex because it limits opportunities. However, too much of anything can be equally as bad. In the case of forex, too much volatility can wipe out your trading account in a matter of moments. This is why negative balance protection is so important.