Explaining Stop-Out and Margin Call Levels

1 min. readlast update: 06.24.2025

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:

  1. Increase Equity – Add more funds to your account.
  2. Reduce Margin Usage – Trade smaller lot sizes or close some positions.

 

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