Safety of funds
HYCM utilises a transaction monitoring and risk-management system to protect its clients from any losses exceeding the amount of their original investment.
HYCM has the discretionary right to begin closing current open positions, starting from the most unprofitable, when the margin level of a client’s account falls below 25%. If the margin level of a client’s account is equal to, or drops below 20%, all open positions will be automatically closed at the current market price, according to our Order Execution Policy.
HYCM offers Negative Balance Protection to its clients as part of its Client Agreement, which ensures that clients cannot lose more than their overall account balance.
Assume you have a balance of $100 and you open a position of 10,000 EUR/USD at 1.0740. Your initial margin will be $53.70 and your Equity/Margin level will be 186%.
After a sharp movement in EUR/USD your loss is at $110. This means your equity will show as -$10 and your position will be closed automatically. Your balance will show as -$10, however, due to our Negative Balance Protection policy, this $10 will be returned to you and your balance will be $0.