You can lose your deposit.
You can't lose more.
Every leveraged trade on 5Trade is backed by Negative Balance Protection. If the market gaps past your stop, the deficit is waived — your account stops at zero.
What happens when a trade goes wrong
The risk engine works in four stages — the last one is the part that stops your balance from going negative.
- 01
Position is opened
You enter a leveraged position. The risk engine watches every tick alongside the WebSocket price feed.
- 02
MTM hits 70% loss
When unrealised losses reach 70% of margin, automatic risk-cut begins partial liquidation to halt further drawdown.
- 03
Step-out at 30%
If the move continues past the auto-liquidation, the system fully exits the position at the 30% step-out level.
- 04
Negative waiver applied
Anything beyond that — a gap, a freeze, a flash crash — is absorbed by 5Trade. Your account never goes below zero.
What protection actually means
Your loss is capped at deposit
You can never owe 5Trade money on a leveraged trade. Worst case, your account hits zero — never negative.
Applies to all leveraged products
F&O, forex, comex, indices and crypto positions are all backed by the same protection layer.
Triggers automatically
There is nothing to enable or claim. The waiver is part of every order you place — by default.
Designed for gap risk
Built specifically for overnight gaps, exchange freezes, and fast-moving events that can blow past stop losses.
Overnight gap on a leveraged position
The ₹12,000 deficit beyond your deposit is absorbed by 5Trade — automatically, without any claim form.