when trading CFD with Interactive Brokers (IBKR),
will the ESMA-NBP-CFD rules, really protect us from negative balance ?
i found two articles which are contradict each other
i assume this one said it will protect clients from Negative Balance
https://ibkr.info/article/3241
3 Negative Equity Protection
The ESMA Decision limits your CFD-related liability to the funds dedicated to CFD-trading. Other financial instruments (e.g. shares or futures) cannot be liquidated to satisfy a CFD margin-deficit.*
Therefore assets in the security and commodity segments of your main account, and non-CFD assets held in the F-segment, are not part of your capital at risk for CFD trading. However, all cash in the F-segment can be used to cover losses arising from CFD trading.
As Negative Equity Protection represents additional risk to IBKR, we will charge retail investors an additional financing spread of 1% for CFD positions held overnight. You can find detailed CFD financing rates here.
while this one said the other way around:
https://gdcdyn.interactivebrokers.c...registration_1/IB-UK_CFD-risk-disclosure.html
will the ESMA-NBP-CFD rules, really protect us from negative balance ?
i found two articles which are contradict each other
i assume this one said it will protect clients from Negative Balance
https://ibkr.info/article/3241
3 Negative Equity Protection
The ESMA Decision limits your CFD-related liability to the funds dedicated to CFD-trading. Other financial instruments (e.g. shares or futures) cannot be liquidated to satisfy a CFD margin-deficit.*
Therefore assets in the security and commodity segments of your main account, and non-CFD assets held in the F-segment, are not part of your capital at risk for CFD trading. However, all cash in the F-segment can be used to cover losses arising from CFD trading.
As Negative Equity Protection represents additional risk to IBKR, we will charge retail investors an additional financing spread of 1% for CFD positions held overnight. You can find detailed CFD financing rates here.
while this one said the other way around:
https://gdcdyn.interactivebrokers.c...registration_1/IB-UK_CFD-risk-disclosure.html