ActivTrades: Client Protection

ActivTrades always takes care of their clients by providing them with client protection:

Protection from negative balance

The interests of ActivTrades' clients are company's top priority - that is why with ActivTrades your balance can not fall to a negative value.

The level of automatic closing of positions on your account has been created to give you the assurance that as a result of commercial action, your potential losses will never exceed your deposit amount. As an additional warranty, ActivTrades offer a Balance Protection Policy and will credit your account to zero balance in case your account reaches a negative balance as a result of your business decisions.

Balance Protection Policy also applies to multiple accounts, so if you have a negative balance in one's account and a positive balance in another, then the positive balance will be used to cover the negative balance. This practice also applies to joint accounts you own with other people, in which case each joint account holder will be held liable for an existing debit or credit on the account.

Client balance protection is valid for all individual trading accounts.

Example of automatic termination - Trade Out

You have €10,000 capital on your trading account and an open short position in EUR against USD from 5 lots (€500,000) at a price of 1.1500. The Trade Out Termination Level - Trade Out for your account is set by ActivTrades at 30% of the warranty margin used, and the maximum allowed leverage is 1:50. That is, the margin requirement for this trade is equal to the total amount of €10,000 of your capital.

In this case, the market rises to 1.1650/1.1652, and at this level your position has an open loss of $7,600 (152 pips X $50 value for each pips) or €6,522.48. Your free capital now stands at €3 477.52. If the market rises by a further 1 pips to 1.1663/1.1665, then the loss will increase to €7,072.43 and the balance will decrease to €2,927.57. At this point, you no longer have 30% of the capital (warranty claim requirement) and the system automatically caps your position at 1.1665. The remaining balance of your capital falls to €2,927.57.

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