What is Negative Balance Protection?
Updated October 17, 2026
Negative balance protection means your broker won't let you lose more money than you deposited.
In huge market gaps an account can drop below zero. With this protection, the broker resets it to zero.
Many regulated brokers must offer it to retail clients.
It doesn't stop you losing your whole deposit. It only stops you owing more.
Example
A surprise news gap takes your account to minus $50, and the broker resets it to $0.
Questions people ask
Do all brokers have it?
No. Check the broker's terms before you deposit.
Does it replace a stop loss?
Not at all. It's a last resort, not a plan.
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