Aggregate liability

[ESMA 35-36-1262 Q&As on product intervention, question 5.4] Negative balance protection means firms must limit the retail client’s aggregate liability for all CFDs connected to a CFD trading account to the funds in that CFD trading account. This implies that a client can never lose more money than the funds specifically dedicated to CFD trading. Funds in a CFD trading account are limited to the cash in the CFD trading account and unrealised net profits from open positions. Funds in the CFD trading account do not include any funds or other assets held in client accounts for purposes other than CFD trading. Open CFD positions means contracts for differences contracts (as defined in Article 1(a) of the CFD Decision) entered in to by the client. This does not prevent firms from using the profits from the closure of open positions, as required by margin close-out protection as defined in Article 1(e) of the CFD Decision.