Help CenterIn a trading environment, managing margin levels is crucial to ensure that your positions remain open and your account stays in good standing.
Here's a breakdown of how Stop-out Levels and Margin Calls work:
Margin Call (100%)
When your margin level reaches 100%, it triggers a Margin Call, which means that you no longer have enough margin to maintain your current position. At this point, you're not permitted to open any new trades until additional funds are added to your account or some positions are closed.
Stop-out Level (70%)
When your margin level drops to 70%, a Stop-out occurs. This means that the platform will automatically begin closing your open positions to bring your margin level back up to a safe range. The positions will close gradually, starting with the least favourable trades, to prevent your account from going into negative equity.
Margin Level Formula
To calculate your margin level, use the following formula:
Margin Level = (Equity / Margin) * 100
Where:
- Equity is the total value of your account, including any profits or losses.
- Margin is the amount of money required to maintain your open positions.
How to Manage Your Margin Level
To avoid Margin Calls and Stop-outs, you can take steps to maintain a healthy margin level:
- Add more funds to your account to increase your equity.
- Reduce your position sizes to lower your margin requirements.