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---
title: "ESMA Q&A 1981 — Q&A — Aggregate liability [Answer Published]"
shortTitle: "ESMA Q&A 1981 — Q&A — Aggregate liability [Answer Published]"
answer_id: ESMA_QA_1981
topic: "Product intervention"
status: "Answer Published"
type: qa
instrument_type: qa
authority: ESMA
binding: false
binding_character: non_binding
legal_status: in_force
regulation: "MiFIR"
mifir_level3: true
mica_level2: false
legal_basis: "ESMA Decision 2018/795; ESMA Decision 2019/796"
date: 1 June 2018
source_link: https://www.esma.europa.eu/publications-data/questions-answers/1981
lifecycle: "Answer Published"
text_version: "ESMA Q&A register, 1 June 2018"
source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1981"
check_status: matched
verified: true
last_checked: 2026-10-26
checked_against: "the ESMA publication"
source:
  prepared_by: "ESMA"
  published_by: "ESMA"
  published_in: "ESMA Q&A tool"
  evidence:
    prepared_by: "ESMA Answer"
    locator: "ESMA Q&A entry ESMA_QA_1981: field 'ESMA Answer', no 'Answer provided by' line"
document_type: "qa_answer"
legal_nature: "not_legislation"
addressees: "not stated in the document"
dates:
  published_on: "2018-06-01"
  question_submitted_on: "2018-06-01"
  locators:
    published_on: "ESMA Q&A Excel export ESMA_QA_1981, column 'Esma responses', date line"
    question_submitted_on: "ESMA Q&A Excel export ESMA_QA_1981, column 'Date of submission'"
lifecycle_label: "Answer Published"
---

**Answer by ESMA, published in its Q&A tool · not legislation · published 1 Jun 2018 [Answer Published]**

*Answer Published · ESMA Q&A register, 1 June 2018 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1981)*

| | |
|---|---|
| **Full title** | ESMA Q&A 1981 — Q&A — Aggregate liability \[Answer Published\] |
| **Prepared by** | ESMA |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_1981 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 1 June 2018; question submitted 1 June 2018 |
| **Legal basis** | ESMA Decision 2018/795; ESMA Decision 2019/796 |
| **Related instruments** | None recorded |
| **Text on this page** | Word for word — the full text of the ESMA publication |

**Aggregate liability**

### Question

What is considered the retail client’s aggregate liability in relation to negative balance protection?

***

### Answer

\[ESMA 35-36-1262 Q&As on product intervention, question 5.4\]

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.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1981)