Does Pepperstone offer 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/ TradingView

Margin level (equity / margin) = < 20% (stop out) for Professional Clients trading on MT4 and MT5