Hello Deriv Community,
Have you ever wondered why your MT5 Financial balance goes negative?
MT5 is a platform for trading contracts for difference (CFDs). CFDs are leveraged products. Leverage means that your returns can be multiple times higher than the margin, but your losses can also be multiple times higher. So you need to be aware of the risk.
CFD trading risks
When you trade CFDs, your profit or loss depends upon the price movement of the underlying instrument. For example, if you buy CFDs on gold, and the price of gold rises, you can sell the CFDs with profit and vice versa. Sometimes the prices of the underlying instrument may fluctuate rapidly and over wide ranges. In the case of cryptocurrencies, the price might even drop to zero. These fluctuations may be caused by unforeseeable events or changes in conditions that neither you nor we can control.
You may lose the entire sum that you have invested, and in some cases, your loss may even exceed the sums you have invested and/or deposited with us. If you trade a high volume at a high leverage and the price moves unfavourably, you might lose more than the amount you have in your account with us. In this case, your balance will become negative.
You may always practise using a demo account. A demo account can always be topped up to the original 10,000 virtual US dollars.
When trading with your real account, please remember that the services that Deriv offers are only suitable for you if you can afford to bear the loss of all the money you invest through Deriv and if you understand and have experienced the risks involved in such trades. International currency or commodity prices are highly volatile and difficult to predict.
Note: Please be informed that the negative balance will be reset on the next day.
If you have any questions, please contact us via live chat.
