iForex applies NBP to all real/live trading accounts, so traders do not lose funds more than they deposit into their accounts by trading with iForex.
In case the account reaches the stop out level set by iForex, then all positions are closed(liquidated) and the account balance goes negative as a result, iForex will cover the exceeded losses and fix the balance to zero.
Who covers the exceed losses?
All the exceeded losses, meaning the negative balance in trader’s account, will be covered by iForex itself.
iForex assures that its traders will not lose more than they deposit by trading.
So you just need to make sure that you do not invest your money more than you can afford to lose.
The NBP itself is a common thing among financial brokers though, there are some brokers which do not offer NBP to its clients.
When could the negative balance happen?
Normally, while trading you wouldn’t see any negative balances in your account.
But when the Stop out triggers, there could be negative balance in your account as a result.
iForex has set the stop out level to 0% of margin level where you have no positive free balance in your account.
Even when the stop out occurs, it sometimes may not be able to avoid the exceeded losses when the market volatility is high.
But you do not need to worry about it as iForex is covering the all the exceeded losses for traders.
Profit unlimited & losses limited
iForex offers up to 1:400 leverage to all traders in certain financial instruments, but not all of them.
By using the high leverage of 1:400, you can generate 400 times more profit in your account, but the losses limited to the deposit amount.
There are some conditions to leverage/margin requirements, so please read through the contract specification in iForex website.