when trading CFD with (IBKR), will the ESMA-NBP-CFD rules, really protect us from negative balance ?

Discussion in 'Interactive Brokers' started by shmvls, May 9, 2022.

  1. shmvls

    shmvls

    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

    RISK DISCLOSURE.png