Inquiry about protection and negative balance coverage Ousama_mansour@hotmail.com
Inquiry about protection and negative balance coverage Dear 55brokers Team, I am considering opening an account with CFI(Jordan) through your services and would like to gain a deeper understanding of the protections in place, particularly regarding negative balance coverage. Could you provide detailed information on how your company ensures the protection of clients’ equity? Specifically, I am interested in understanding the measures taken to prevent accounts from falling into negative balances and how any potential losses are managed. It is important to me that my investment is safeguarded, and I would appreciate your guidance on the extent of this protection. Thank you for your time and support. I look forward to your response and learning more about the security measures offered. Best regards, Ousama Mansour
CFI Jordan offers Negative Balance Protection (NBP) as part of its client risk management strategy. This protection ensures that traders cannot lose more than the funds in their account, meaning their balance will not fall below zero, even in highly volatile markets. This is how the negative balance protection works:
- When the market conditions are extreme, and the market turns against the trader, due to the CFI’s NBP policy the trader’s balance won’t go negative.
- Whenever the account balance approaches zero due to adverse market movements, positions generally automatically close out, thus minimizing the potential for losses.
As to the safety and reliability of CFI Jordan, the broker does not hold a top-tier license, which is considered the highest credibility for safety and reliability Brokers. However, CFI is still regulated by the local regulatory authority, which is a domestic regulatory authority in Jordan, established by the Jordanian government to oversee and regulate the country’s capital markets, therefore considered a safer choice.
