BrokerRatingWhat is Negative balance protection?
Negative balance protection: A broker's guarantee that you cannot lose more than your account balance: if a sharp move pushes it below zero, the broker resets it to zero.
More terms
- Margin level
- Your equity divided by the margin in use, times 100; it shows how close the account is to a margin call or stop-out.
- Market maker
- A broker that takes the other side of its clients' trades and sets its own buy and sell prices, usually earning from the spread.
- Market order
- An order to buy or sell immediately at the best price available when it is sent.
- Pip
- The smallest usual price change of a currency pair: 0.0001 for most pairs and 0.01 for pairs quoted in Japanese yen.
- Risk/reward ratio
- A comparison of a trade's expected profit with its possible loss; 1:2 means risking one dollar to make two.
- Segregated client funds
- Keeping client money in bank accounts separate from the broker's own funds so it cannot be used for its business or debts; required by stron...