How does negative balance protection on HYCM brokerage platform work?

Asked 3 years ago

Hi, I've just found out that Henyep Capital Markets has negative balance protection. Why? Do all trading platforms have this? I mean, if you only have so much in your account, you only have so much to lose? Can some please explain how negative balance protection works? Full of questions. Thanks.

Range of services on trading platforms Henyep capital markets (hycm)Negative cash balance

Osasere Okunloye

Monday, August 09, 2021

Negative balance protection traders cannot lose more than they have in their account; and the broker has the right to close the trade when this happens. For example, if you have $100 and you lose $110, HYCM will close the trade and due to your negative balance protection, your account will not show as -$10 but as $0.