You may be surprised to discover that with certain brokers, you can actually lose more money than you invest.
If your broker does not offer Negative balance protection, that means that if a trade goes wrong, your account could reach a negative number, in which case you end up owing money to the broker. As a result, the broker has the right to ask you to deposit more money in order to correct the negative balance and even take legal action against you if you refuse.

Thankfully, most brokers, including Amega, understand that this is an unfair practice and have implemented Negative balance protection, which ensures that your account will never lose more money than you have invested. In fact, with the implementation of margin call, you will be notified immediately if your account rapidly reaches a low level.

Negative balance protection is extremely important to safeguard your investment and give you a fighting chance to recover a possible loss. It allows you to take advantage of high-volatility trades without worrying about losing all your money and going into debt.

💡Tip

Risk management tools like margin call are essential for controlling your acceptable risk. Perhaps even more important are stop-loss and take-profit.