Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Does Pepperstone offer negative balance protection?

Negative balance protection 

In a fast moving market, it's possible that your account may go into a negative balance. If your account does fall into a negative balance, retail clients are provided with negative balance protection and we will return the balance to zero as soon as possible. Please note, negative balance protection does not apply to any client classified as Professional or ‘Pepperstone Pro’.

50% Margin Close-Out Level

An automatic stop out will occur for retail clients when account equity falls below 50% of the margin required for open positions. 

This percentage is constantly calculated and updated on your platform. It’s called 'margin level'. If your equity (balance minus open profit/loss) falls below 50% of the margin required to maintain the open position(s), they’ll be automatically closed. This is calculated as follows:

  • Margin level (equity / margin) = < 90% (margin call warning)
  • Margin level (equity / margin) = < 50% (stop out) for Retail Clients on MT4 and MT5
  • Margin level (equity / margin) = < 50% (stop out) for Professional Clients and Retail Clients on cTrader
  • Margin level (equity / margin) = < 20% (stop out) for Professional Clients trading on MT4 and MT5

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