When trading with leverage, understanding the Stop-Out level is crucial for managing your risk effectively. This article explains our Stop-Out policy and how it works to protect your trading account.
What is the Stop-Out Level?
FXTRADING.com maintains a Stop-Out level of 50%. This is the minimum margin level required to keep your positions open. When your margin level drops to 50% or below, the system will automatically begin closing your positions to prevent further losses.
How Stop-Out Works:
Your margin level is calculated as: (Equity ÷ Used Margin) × 100%
When this level reaches 50%, the Stop-Out mechanism is triggered
The system will automatically close your open positions, starting with the largest losing position
Positions will continue to be closed until your margin level exceeds 100%
Important Points to Remember:
Position closing occurs in order from largest to smallest losing positions
The automatic closure continues until your margin level (maintenance margin) reaches 100% or higher
This mechanism is designed to protect your account from going into a negative balance
Regular monitoring of your margin level is essential for responsible trading
Understanding and respecting the Stop-Out level is an important part of risk management. We recommend maintaining adequate margin in your account and using appropriate position sizing to avoid reaching the Stop-Out level.
For additional information about margin requirements or risk management strategies, please contact our Service Hub or use Live Chat in your Client Portal.