Deriv protects you from the negative balance while trading CFDs. That means you can’t lose more than your account balance. Your trade will automatically be closed once you reach the stop-out level. Ultimately, the negative balance protection resets your balance to zero if it goes negative.
Note that the stop out level is when your trading account lacks inadequate funds to maintain open positions. The magic is due to the drop in margin; your worst-performing open trades are immediately closed.
We all know that CFD trading carries the highest risk with high volatility. One of the significant reasons for trading this form on Deriv is that you will get the highest protection again, losing your money because the platform offers risk management such as stop loss and take profit. And using these features, you can control the high volatility trade effectively.