By registering with NAGA, every client is automatically eligible for Negative Balance Protection, a measure implemented by the European Securities and Markets Authority (ESMA).
What is Negative Balance Protection?
Negative Balance Protection ensures that traders cannot lose more than the amount they have initially deposited.
Example:
If a client deposits 500.00 EUR and invests the full amount in a trade, but the trade results in a 700.00 EUR loss, the account balance could potentially drop to -200.00 EUR due to price fluctuations in leveraged trading.
However, because all NAGA clients are covered by Negative Balance Protection, the client will not be responsible for the -200.00 EUR. In other words, the account balance will not go below zero, and the client will not owe any additional funds to the company.