What Are Stop-Out and Margin Call Levels?
Understanding your Margin Level is key to staying in control of your trades and avoiding unexpected liquidations.
📉 Margin Call – 100% Level
When your Margin Level drops to 100%, you’ll hit a Margin Call.
- This means you can no longer open new positions.
- It’s a warning that your equity is running low in relation to your used margin.
- At this point, the system flags your account as at risk.
🔻 Stop-Out – 70% Level
If your Margin Level drops further to 70%, the platform will begin to close your open positions automatically.
- This is called a Stop-Out.
- The goal is to free up margin and protect your account from going negative.
- The system will close positions starting with the ones that are losing the most.
How Is Margin Level Calculated?
Use this simple formula:
Margin Level = (Equity ÷ Used Margin) × 100
How Can I Avoid a Stop-Out?
You’ve got two main options:
- Increase Equity – Add more funds to your account.
- Reduce Margin Usage – Trade smaller lot sizes or close some positions.