XTB Implementing Negative Balance Protection in Bid to Safeguard Clients

XTB (WSE:XTB) has taken new measures to protect its client base, implementing Negative Balance Negative Balance In its most basic form, a negative balance represents an account balance in which debits exceed credits. A negative balance indicates that the account holder owes money. A negative balance on a loan indicates that the loan has not been repaid in full, while a negative bank balance indicates that the account holder has overspent.In the retail brokerage space, this phenomenon occurs when a position’s losses in an account exceeds the available margin on hand from a given trader. When a trader place In its most basic form, a negative balance represents an account balance in which debits exceed credits. A negative balance indicates that the account holder owes money. A negative balance on a loan indicates that the loan has not been repaid in full, while a negative bank balance indicates that the account holder has overspent.In the retail brokerage space, this phenomenon occurs when a position’s losses in an account exceeds the available margin on hand from a given trader. When a trader place Read this Term protection. The measures will take effect at month’s end, granting additional safeguards to foreign exchange (FX) and contracts-for-difference (CFD) products at XTB.

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Brokerages have been keener to adopt negative balance protection in recent years given the potential for client losses. The most relevant example that comes to mind was the Swiss National Bank’s surprise decision in 2015 that left many investors facing substantial losses.

Per the new changes, XTB will be applying negative balance protection on both trading platforms, xStation and MetaTrader. Moreover, XTB will also take measures to protect its traders against debt regardless of account type. This coverage will entail its Basic, Standard and Pro accounts, including investments on FX, indices, commodities, equity CFDs, exchange-traded-funds (ETFs), and Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

XTB's efforts to implement such precautionary measures reflects its commitment to investors, in essence joining the rest of the industry in safeguarding its clients. Omar Arnaout, Chief Executive Officer President of the Management Board, commented: "We decided to introduce negative balance protection in XTB, to allow our clients to manage their positions during times of higher market volatility and increase control of their funds without worrying about falling into debt."

Client safety has been a greater point of emphasis not just at XTB, but across the retail industry in recent years. Numerous educational programs, client insurance regimes, and negative balance protection measures have all helped create a more stable environment for FX and CFD traders.

“We hope that this feature increases the security and comfort of our clients when trading on global financial markets,” reiterated Mr. Arnaout. The measures will come into effect on October 1, 2017.