MT5 negative balance protection and your trade history

Understand gap losses, stop outs and balance corrections, and how to record each without distorting your statistics.

Few things alarm a trader like a balance that drops below zero, or a stop out that costs more than the deposit. Many brokers say they offer negative balance protection, and the MetaTrader 5 history then shows a correction row. This page explains what that row means, how it differs from a margin call and a stop out, and how to keep it out of your performance statistics while still recording what happened. It covers record keeping only; it does not tell you which broker to use or how to trade.

How a balance can go negative

When the price jumps over your stop, the platform can only close at the next available price, as described on weekend gaps and stop loss fills. If the position was large relative to the account, the loss at that price can exceed the funds in the account. The automatic closing of positions when margin runs out is the stop out, covered on stop out and margin call. The usual order of events is a margin call warning, then a stop out at a set margin level, and in a gap the closing price can be worse than the stop out level implied.

What negative balance protection is

Negative balance protection is a broker policy, not a platform feature. Under it, if your balance ends up below zero after positions are closed, the broker resets it to zero, so you do not owe the difference. Whether a broker offers it, for which clients and under which entity depends on its terms and on its regulator, so read the terms on the broker’s own site. Do not assume it exists. If it applies, the correction usually appears in the history as a balance row with a comment, often a short phrase mentioning the correction or negative balance, though wording differs between brokers.

What the row looks like

The key point is that the correction is a balance row, not a winning trade. If you add it to your profit it would look like the broker handed you a gain. Treat it like the other balance rows on balance and deposit rows: record it, but keep it outside the trade statistics.

Handling it in your records

• Keep the losing trade in your statistics at its full loss, as the closing deal reports it. That is the true result of the trade.
• Keep the correction out of profit and loss measures, and note it in the journal so that future you understands the gap between the balance and the sum of trades.
• Compare the broker’s correction amount with the shortfall yourself. If the numbers do not match, ask the broker for a statement.
• Tag the trade as a gap or stop-out event so you can see your figures with and without such events; see equity versus balance drawdown for why drawdown looks so different in these cases.

A worked example (hypothetical)

A trader with an account balance of 500.00 holds a large position over a weekend. The market opens far from the previous close, and the position is stopped out at a loss of 620.00. The balance reads −120.00. A few hours later the broker posts a correction of +120.00 with a comment, returning the balance to 0.00. The trade statistics should show a loss of 620.00, not 500.00, and the correction should sit in a separate line. If the trader had included the correction as profit, the apparent loss would be understated by 120.00. The figures are invented and do not predict any outcome.

Prevention is a review topic, not advice

The usual review questions are about size and timing: was the position size appropriate for the account, and was a weekend hold part of the plan? A journal can show whether such events cluster around Fridays or around news. The page on margin level explains the figure that the platform watches.

AI Trading Journal is a Windows app for MetaTrader 5 only and read-only. It records closed positions, so the losing trade appears with its full loss. It does not record intended stop prices or floating profit, so add the planned risk and your note about the event yourself. The journal is a file on your PC; Notion is an optional extra copy.

Limits and cautions

• Policies differ by broker and jurisdiction; read the broker’s terms and do not rely on this page for legal facts.
• Not every account is covered, and some brokers do not offer protection at all.
• Nothing here is a recommendation to trade any size.

Questions for your broker

Because the policy is the broker’s, the reliable source is the broker. If you want to understand how your own account would be treated, ask in writing and keep the answer with your records. Useful questions are whether negative balance protection applies to your account type and entity, how and when the correction is posted, what comment text it carries in the history, whether it applies to every instrument, and whether any condition, such as a prior breach of terms, can remove it. The answers can differ between a retail and a professional client classification, and between regulators, so do not assume that a friend’s account works the same way.

• Keep the written reply together with your monthly exports.
• Note the date of the reply; terms can change and the date shows which version you were told.
• If a correction ever looks wrong, compare it with the statement before contacting support, and quote the deal numbers.

Understanding the policy is a record-keeping matter; it is not a reason to take larger positions, and nothing on this page should be read that way.

Frequently asked questions

Related guides

• A local trading journal for MT5
• P&L calendar for MT5
• Trade notes, ratings and screenshots
• Trading progress and goals
• Back up your journal and move it to a new PC
• An offline trading journal for Windows
• How to set monthly trading goals
• Import your whole MT5 history
• How to tag trades
• Trade screenshots for your journal
• All trading journal comparisons