Trading leveraged products means you are entering positions with much higher volumes than the amount available in your account.
This offers you the unique opportunity to make more profits by investing fewer funds but you also run the risk of increased losses.
To protect your account balance from the effects of the leveraged trading and increased market volatility, XM’s trading interface includes a risk management system that will attempt to close out your positions once your equity reaches 20% of the required margin.
This greatly decreases the risk of losing more funds than you have deposited, however this can still occur especially in cases when an account is heavily burdened with open positions and the market is highly volatile.
Fortunately, XM support NBP(Negative Balance Protection) which protects traders from exceeded losses.