Negative Balance Protection
KVB Ensures Your Security with Negative Balance Protection
What is Negative Balance Protection?
Negative Balance Protection is a risk management feature designed to protects customer accounts, ensuring that any losses from trades never exceed the available funds in your account.
In addition to protecting you from market movements that could deplete your entire balance, Negative Balance Protection ensures your losses never exceed the available funds in your account.
Negative Balance Protection ensures that your account balance will never fall below the amount you initially deposited. However, it’s important to note that market gaps—where prices jump up or down unexpectedly may trigger account closure, even in the case of negative equity. Rest assured, even if your account balance reaches zero, you will not owe us anything.
It's important to remember that futures trading involves the risk of rapid losses due to leverage. Therefore, effective risk management is essential for all traders.
Advantages of Negative Balance Protection
Negative Balance Protection offers a safety net for traders, especially those new to futures trading. Volatility, along with the use of leverage, can lead to significant losses, making it crucial for novice traders to have this protection in place.
Negative balance protection also helps traders managing volatility better. While volatility can present limitless trading opportunities when managed properly, it can be risky for beginners. This is where Negative Balance Protection becomes crucial. However, it's important to note that not all brokers offer this safeguard to their clients.
At KVB, we are committed to providing a secure trading environment because we understand that things don’t always go as planned in the financial markets. Losing streaks can happen, and while they are never easy, losses are a natural part of trading. With effective risk management and a trusted broker by your side, you can trade the vast financial markets with greater confidence.
We're here to support you every step of the way.