SAFETY LAYER

Negative Balance Protection

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.

Trade with the safety net About leverage

Maximum loss possible Your deposit

Liability beyond zero ₹0

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.

Position is opened

You enter a leveraged position. The risk engine watches every tick alongside the WebSocket price feed.

MTM hits 70% loss

When unrealised losses reach 70% of margin, automatic risk-cut begins partial liquidation to halt further drawdown.

Step-out at 30%

If the move continues past the auto-liquidation, the system fully exits the position at the 30% step-out level.

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.

WORKED EXAMPLE

Overnight gap on a leveraged position

Initial deposit₹50,000

Leverage used100x

Mark-to-market loss after gap−₹62,000

Your final account balance₹0 (not −₹12,000)

The ₹12,000 deficit beyond your deposit is absorbed by 5Trade — automatically, without any claim form.