CFD loss bigger than owned funds? - Normal account

Good morning everyone,

As far as I know and read everywhere, there’s no possibility to loss more money than I have on normal account (it’s only possible for PRO users).

I had a situation where my position was closed because I haven’t got enough money on my account which is fully understandable for me. I opened this position before market close, then I had a bad luck and next day on market open it was immidiately closed because chart was much higher (I had short position). Currently I have no money on my account (lost 100%), but in Reports - Result this position have much bigger loss than it was possible with my funds. Just an example - I had 1.000$ funds, now I have 0$ but my result in reports show -5.000$.

How should I understand that, could someone please kindly help me with that situation?
Thank you very much in advance.

Wrong, you are using leverage awell. if it rapidly drops below the account level it can’t action the fund your account message, give you a margin call or close your positions quick enough you can lose your ass.
You technically don’t owe any more than your account value so the additional 4k can’t be claimed but I’m pretty sure the $1000 is gone.

Be a bit more diverse by spreading your bets across more stocks and try to close accounts the same day win or lose, just move on

Thank you very much for your answer. Using CFD and leverage is not something new for me, but because of bad luck and life situation I haven’t got possibility to close it asap before market close, and then I saw what happened next day and this is really a new situation for me.

As on above example, loss of 1.000$ is understandable for me, but seeing much bigger loss in a Reports-Result list scares me a little, becasue as far as I know I shouldn’t lost more that I had, which was 1.000$, and it also adds to my total account result.

Should I be calm about this position in Result list, and treat it just as a number?

Is it $1 or $1000? Worth asking the pros just incase but im not aware they can legally charge you more than the total deposited amount of your account without fierce regulated consent from you and proof you can afford it.
@Team212 can you help clarify here please?

It’s 1000$ but it’s just an example, it’s easier to look at round numbers.
I’ve read again everything on T212 website and it’s quite clear that I can’t loose more than I have, but this negative number that is visible in result list - it just makes me a little nervous.

Official confirmation from @Team212 will be really helpful.

They will come along, just give them time

As a retail customer you are protected from negative balance on CFD

So if it closed -$5,000 you should be at 0. And they shouldn’t be demanding $5000 from you.

The most you can lose is what you have as funds inside CFD. They cannot also take from Invest/ISA.

6.2. You shall monitor your open positions and shall bear the risk of suffering losses from your trading activity. We provide retail CFD clients with negative balance protection on their accounts

The platform is set to start closing your positions when your margin indicator drops below 25%. This means that you have lost all of your free funds and 50% of your total blocked margin at this point. However, this is the best-case scenario. Sometimes, volatility could be too high, and the client’s exposure may be too big. If the account gets wiped out and the negative result of the position(s) exceeds the account value (that could occur only in case of a market gap), the platform applies a negative balance correction. It is present in the transactions tab. If you think that you should receive a correction and the platform has not applied it, please drop me a personal message to check your account. @Tawo

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@Rumen Sorry this didn’t directly answer the question over the negative balance, does this mean the negative balance is claimable by t212 or not?

Dear @Rumen

Thank you for explanation. I’ve checked the transactions TAB, and I confirm, there is a position called “Negative balance settlement”.

So currently my account is wiped out and it’s at 0$. On transactions TAB I have Negative balance settlement, and on Results TAB I have negative position which I think is my account funds + your Negative balance settlement.

Could you please confirm how should I treat and understand this situation? Is everything correct, and the only money I’ve really lost are my funds that I had on my account?

Everything with your account is fine then. You have lost only the amount present in your account at the time. Although the negative result of your position exceeded the total account value, the platform corrected the discrepancy.

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Dear @Rumen

Thank you very much for clarification, good news. This was the first time I had a situaton like that, so I just wanted to be 100% sure that I understand and read everthing on my account Reports correctly.

Thank you once again for your kind help.

I’m glad your happy about losing just the $1000, although admittedly thinking you’d have to pay back a further $4000 must have been worrying.

Good warning :warning: to cfd users though


Yes, definitely. Actually I was sure that I’m not affected until I saw the numbers in Results and it scared me instantly, like HOW and WHY.

Lesson learned - nothing is more imporant in your life than closing the position before market close :slight_smile:

@Tawo Definitely, like I said either way. Take your small losses and move on. Never sleep when a position is open or you might just get caught sleeping

@Lenos1980 The negative balance would never be claimable by Trading 212. It always gets corrected by the system as a positive transaction to the client’s account in the rare case that it occurs. As previously mentioned, we have an integrated negative balance protection system that ultimately ensures that you cannot lose more than the deposited funds in the CFD account.