NEGATIVE BALANCE PROTECTION. 22.1. The Company’s trading facilities are designed to prevent the Client from incurring a negative balance when trading under normal market conditions. 22.2. Still, it may be possible to incur a negative balance whilst trading and therefore the Company will reimburse the negative balance on the Client’s account, also known as ‘zero out the account’, as further stipulated in Article 23 of this Agreement. 22.3. This Article, or the action of ‘zeroing out an account’, will not apply where the Company determines, in its sole discretion, that: 22.3.1. The negative balance is unrelated to the trading activity. For example, where the negative balance relates to any fees or charges owed to the Company; 22.3.2. The negative balance is connected to or a result of a breach of this Agreement; 22.3.3. The Company is able to set-off any amounts owed between the Client and the Company; 22.3.4. The Client is excludedfromthisprotection for any reason; 22.3.5. The Client traded recklessly as a result of placing over reliance on the Company’s negative balance protection facility; and/or 22.3.6. The Client abused or intended to abuse the Company’s negative balance protection facility. 22.4. Even when the reimbursement of a negative balance has been made or is due to be made on a Client’s account, the Company may revoke or reverse the reimbursement, at its sole discretion. 22.5. The Company shall be entitled to offset any negative balance with any positive balance which is present in the other trading accounts belonging to the Client.
Appears in 5 contracts
Samples: Client Agreement, Client Agreement, Client Agreement
NEGATIVE BALANCE PROTECTION. 22.1. The Company’s trading facilities are designed to prevent the Client from incurring a negative balance when trading under normal market conditions.
22.2. Still, it may be possible to incur a negative balance whilst trading and therefore the Company will reimburse the negative balance on the Client’s account, also known as ‘zero out the account’, as further stipulated in Article 23 of this Agreement.
22.3. This Article, or the action of ‘zeroing out an account’, will not apply where the Company determines, in its sole discretion, that:
22.3.1. The negative balance is unrelated to the trading activity. For example, where the negative balance relates to any fees or charges owed to the Company;
22.3.2. The negative balance is connected to or a result of a breach of this Agreement;
22.3.3. The Company is able to set-off any amounts owed between the Client and the Company;
22.3.4. The Client is excludedfromthisprotection for any reason;
22.3.5. The Client traded recklessly as a result of placing over reliance on the Company’s negative balance protection facility; and/or
22.3.6. The Client abused or intended to abuse the Company’s negative balance protection facility.negative
22.4. Even when the reimbursement of a negative balance has been made or is due to be made on a Client’s account, the Company may revoke or reverse the reimbursement, at its sole discretion.
22.5. The Company shall be entitled to offset any negative balance with any positive balance which is present in the other trading accounts belonging to the Client.
Appears in 1 contract
Samples: Client Agreement
