We will explain the rules and conditions for zero-cut when the balance of a user account at BigBoss becomes negative. Like other overseas FX companies, BigBoss is equipped with a zero-cut system. There are conditions for zero-cut, and losses will not be compensated in the case of transactions that violate the trading terms. There are various rules, so we will introduce them.
What is Zero Cut? What kind of system is it?
What is zero cut? When losses exceed the account balance due to forced loss cuts, etc., it becomes a negative. Normally, this would become a debt, but BigBoss will compensate for this negative amount. With zero cut, there is no margin call, and any losses that exceed the account balance are compensated for by the FX broker. This offsets the negative amount of credit, so you can rest assured. Don’t worry, the remaining negative amount will automatically disappear. Compared to others, the details are as follows. Check before you do it.
Flow of Zero Cut Activation
Now, let us introduce how the zero cut program works and how it is activated. It is applied in the same units and conditions to demo, corporate, deluxe and standard accounts. Basically, open positions are prioritized and applied together in the following order. It is applied to all financial products in Japan. You can also check from My Page whether the margin that caused the account balance to become negative has been reset.
Margin Call
A margin call will be triggered if the margin maintenance rate falls below 50%. A margin call is a system that warns you when the margin maintenance rate falls below a certain percentage. This in itself is not risky, but it is very dangerous as it is a signal that a stop loss is approaching. In other words, it means that you should process your settlement. It is dangerous to enter lots in scalping or day trading. It’s fine if you have little cash, but it is recommended that you make a careful decision before making a decision. Be careful as it may result in your account being cancelled later.
Forced Loss Cut
If the margin maintenance rate falls below 20% after a margin call is triggered, a forced stop loss will be triggered. This is a system that literally forces a position to be settled. A forced stop loss is triggered regardless of the trader’s wishes. It is used by almost all FX brokers, both domestic and overseas. Given the situation, beginners should cut their losses at an earlier stage. When it comes to indicators, stop losses can occur all at once, as shown above. Please keep an eye on the news one by one.
Zero cut
Generally, margin calls and loss cuts are sufficient. However, when the market moves significantly due to important economic indicators or politics, the margin may become negative. When losses exceed the account balance, a zero cut is triggered. Zero cuts are performed within a few minutes to the next business day, and no margin call is required. The price is automatically reset to zero. Therefore, due to the settings, there is no large burden.
Cases where zero cut is not applicable
Actually, at first glance, the zero cut is a system that is very helpful to traders. However, there are reasons why you may not be eligible, so check to see if you are eligible. There are also some types of FAQs, guidelines, policies, and terms of use, so be sure to check them. Customers can trade while looking at the screen on mobile apps, so it is quite comfortable. Many of Big Boss’s contracts and terms are set out in the menu, so be sure to check them.
Hedging with multiple accounts
Hedging is not prohibited in BigBoss. However, hedging using multiple accounts is prohibited. Hedging with multiple accounts is not subject to zero cut.
Trading that puts excessive strain on the server
Trading that puts excessive strain on the server is prohibited by the terms of use. High-frequency system trading and putting a strain on the server are considered nuisance behavior. Trading that intentionally takes advantage of delays is also prohibited.
Unauthorized use of bonuses
BigBoss has a lot of campaigns and promotions, but if the bonuses obtained from these are fraudulent, you will be punished.
Trading aimed at times of high market volatility
Trading aimed at times when important economic indicators such as economic indicators are announced or when important people from various countries make statements is also prohibited. If the timing and market direction line up well, you can make a big profit in a few seconds, but this is prohibited by this broker.
Unfair trading
Unfair trading is also prohibited. This includes latency trading and trading using hacking tools. If you are found to be using these methods, your account will be frozen, so don’t do it.
You can open an account for free
You can open an account for free at the home page from the link below. This is a recommended broker for those who want to play with narrow spreads, so let’s try it out. Information is also introduced in the following article. Since the effective leverage is high, you can hold the target stocks and make a profit even with a small amount of funds. Additional accounts can be opened and support is also available, so it is recommended. Deposits and withdrawals are also smooth, and you can apply the maximum leverage for FX currency pairs and CFDs, and trade on platforms such as MT4 and MT5, which are used by professionals.
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