Margin call and a Stop out

What is a Margin call?

A Margin Call, also known as a margin stop, is a protective measure that helps traders to manage their risk and prevent additional losses. It is a notification from your broker that you are in danger of the possibility of having some or all of your positions forcibly closed, or liquidated.

At FXCE, a margin call occurs when your margin level falls below 50%.

See how to calculate margin level here.

What is a Stop out?

A Stop Out is the act of closing or liquidating your positions.

At FXCE, a stop-out occurs when your margin level falls below 30%.

Once a stop-out occurs, your open position with the biggest loss will be automatically closed until your margin level returns back above 30% to protect your account from suffering further losses. This is how FXCE helps you to manage your risk.

In the example above, a 2 lot position has been opened and the margin level is currently over 421.33%.

• If the margin level falls to under 50%, we will notify the trader that he is in danger of the possibility of having some or all of your positions forcibly closed, or liquidated.
• If the margin level falls to under 30%, the system will automatically close out the trade to prevent further losses.