If a strategy’s equity becomes 0 or less, all open trades in the strategy are automatically closed (this is known as stop out). Sometimes this change is bigger than the strategy’s equity at the time, so it results in a negative balance for the strategy. When this happens, the strategy’s equity is reset to 0 by a specially scripted command, NULL_compensation.
Note: If the trader’s orders are fully hedged, the stop does not occur despite negative equity. MT4 does not close orders, so investments will not be closed.
When a strategy reaches a negative equity because of stop out, investments copying that strategy may reflect a negative equity as well. In case of strategy stop out, all orders will be closed, orders copying to the investment will be stopped. In 7 days investment gets NULL_compensation and investment will be reset to 0.
Important: Exness does not take the negative results of the investment balance into account after closing an investment, as the negative balance is compensated.
We recommend reading on the copying process for an investor for more information.