Negative balance protection ensures that even if markets move fast against your trades, your account will never be negative. This measure of security is undoubtedly beneficial for all traders but even more for beginner traders who may not be familiar with the speed at which markets move during political announcements and market openings.
Negative balance protection protects traders with losing positions from ending up with a negative balance in their trading accounts. In the unpredictable financial markets, negative balance protection contributes to managing volatility and allows traders to take advantage of high-volume trading sessions without the fear of going into debt. Really high volatility could wipe out trading accounts in the blink of an eye.
However, all traders agree that low volatility does not constitute the ideal trading conditions as it limits trading opportunities and therefore negative balance protection is a crucially important guarantee offered by trusted brokers.