Does Pepperstone offer negative balance protection?
We have an automated stop-out policy designed to minimise your losses and to take action before the market moves further against your open contracts. The level at which our automated stop-out occurs depends on the platform you're using, and the policy regarding covering negative balances varies depending on the circumstances.
For MT4/5 accounts, the automated stop-out system will begin to close out trades when account equity falls below 20% of the margin requirements (ie. margin level falls below 20%). For cTrader accounts, the automated stop-out system will begin to close out trades when account equity falls below 50% of the margin requirements (ie. margin level falls below 50%.
But in a fast-moving market, this stop-out may occur after the account has already incurred a negative balance. If your account incurs a negative balance, email firstname.lastname@example.org to request a trade investigation. Make sure you include your account number and details of the trades which were last closed in your email. Our decision to waive negative balances is made on a case by case basis.