What is Negative Balance Protection?
It is possible for your Available balance to become negative. This could occur when all your Available balance is invested in open positions and overnight fees are deducted, or trading losses are incurred. In most cases, the account Equity remains positive.
On rare occasions, market conditions could cause your Equity to become negative. In these cases, eToro will perform a margin call: we will close all your open trades. As part of our policy of Negative Balance Protection, we will then absorb the loss and reset your Equity to zero.
This means that you can never lose more funds than you have deposited into your eToro account.