Understanding negative balance protection
At Doto, your financial safety is our priority. Negative balance protection ensures you never lose more money than you have deposited in your trading account, creating a secure and responsible trading environment.
How does negative balance protection work?
Automatic reset:
If your account balance goes negative due to market losses, Doto automatically resets it to zero. This means you won’t owe any additional money, regardless of market volatility.Controlled risk via margin call and stop out:
Margin call: When your margin level falls below 100%, you receive a notification to take action, such as closing positions or adding funds.
Stop out: If your margin level drops to 50%, your trades are automatically closed to prevent further losses.
Immediate action:
After a stop-out, the automatic reset occurs immediately. You can then top up your account and resume trading with zero negative balance.
Example:
Suppose you have $1,000 in your trading account. You open a leveraged position, but a sudden market movement causes a loss of $1,200.
Negative balance protection ensures your maximum loss is limited to your initial $1,000 deposit. Your account balance will be adjusted to $0, not -$200.
Why choose Doto's negative balance protection?
Doto's negative balance protection guarantees capped trading risk, so you can trade confidently. By combining automatic resets, margin controls, and a secure platform, we ensure your trading experience remains safe and responsible.