The short answer
ASIC’s current retail CFD intervention framework includes negative-balance protection, but it should not be assumed for every product, account type or overseas entity.
ASIC describes leverage limits, margin-close-out requirements, negative-balance protection and restrictions on inducements for the retail CFD products covered by the order. Wholesale clients and other instruments may not receive identical treatment.
What to do next
Check the legal entity and whether the particular account is a covered retail CFD product before assessing maximum exposure.
IG
This official website is a relevant starting point for this question. Product access or eligibility depends on where you live and the provider's own requirements.
Visit IG ↗Official website — not an affiliate tracking link. A resource link does not imply that every reader qualifies for its services.
Questions people ask
What is the direct recommendation for can an Australian retail CFD customer lose more than the money in their CFD account?
ASIC’s current retail CFD intervention framework includes negative-balance protection, but it should not be assumed for every product, account type or overseas entity.
Which residency or country restrictions apply to can an Australian retail CFD customer lose more than the money in their CFD account?
Yes. This page describes the rule or example for Australia. The contract, residence and tax rules in another jurisdiction can differ.
Primary source
Our answer is based on guidance published by ASIC CFD consumer protections.
This article explains the published general rule or provider example. It does not establish personal eligibility, a guaranteed allocation or an individual tax outcome.
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