Fullerton Markets today announced the official launch of Negative Balance Protection (NBP) for all its clients. In an increasingly volatile market, NBP is an important option for both traders and investors alike.
With the launch of NBP, all clients in Fullerton Markets will have the peace of mind that all losses - however big or small, will not exceed their investment capital. This is particularly significant during "Black Swan" or major events where slippages may occur due to low liquidity. Without NBP, clients could possibly lose more than their available account balance.
Said CEO of Fullerton Markets Mario Singh, “We are absolutely committed to offer the best trading conditions for all our clients. With the launch of Negative Balance Protection, our clients can never lose more than their deposits. Even if a price spike occurs and causes their position to drop rapidly below zero, our Negative Balance Protection kicks in to ensure that clients do not suffer any negative balance. Their accounts will automatically reset to zero.”
When asked how negative balance occurs in the first place, Mario added, “We don’t need to look further than January 2015 as a prime example. When the Swiss National Bank unpegged the Franc, the value of the Franc shot up immediately. The price could have moved way beyond a client’s margin call or stop out level due to the sheer speed of the move, causing the loss to be much larger than expected. For our clients, the implementation of Negative Balance Protection is the difference between losing money and going into debt. We are happy to cover the costs associated with Negative Balance Protection because providing an optimum trading environment for our base of global clients is of paramount importance to me.”