FAQ

Yes, we provide negative balance protection to all clients.

This means that even in extreme market conditions, where your losses exceed your account balance, your account will not end up with a negative balance.

However, traders who use the maximum leverage available face a higher risk of reaching a negative balance before protection is applied.

For example:

Let’s assume that you have $200 in your account and you open 1 lot of USDJPY on Friday evening, with 1:500 leverage and a $200 margin.*

On Sunday night, the market opens 30 pips away from Friday’s closing price, in a direction against you. Your position will immediately have a loss of 30 pips x $10 = $300, while you only have $200 in your account.

The position will be automatically closed, and your account will have a negative balance of -$100.

This situation is 100% impossible when a trader uses 1:1 leverage. The higher leverage a trader uses, the more risk they take.

Slippage during volatile periods can also lead to negative balances.

Tickmill covers such cases with negative balance protection. However, the company may choose not to grant this protection if the negative balance was incurred as a result of fraudulent activity or market abuse.

Moreover, our Risk department constantly monitors our clients’ risk-taking. If we identify that a client is trading irresponsibly, we will notify them via e-mail and ask them to reduce their risk exposure. We may also reduce the leverage of a client’s account.

*This is an illustrative example.