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.
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