Answer
Negative balance protection is a policy that prevents your account from going below zero, so you cannot owe the broker money if a sudden move wipes out your equity. Many brokers in strictly regulated regions provide this automatically for retail clients, resetting balances to zero if losses exceed deposits during extreme volatility or gaps. In other jurisdictions it may be optional or not offered at all, leaving traders theoretically liable for negative balances, though many brokers still forgive small deficits as a goodwill gesture. If you trade with high leverage or hold positions over news and weekends, negative balance protection can be an important safety net. Always check the client agreement to see whether it applies, to which account types, and under what conditions.
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