Margin Call and Stop Out levels

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Margin Call and Stop Out levels

XM

Margin Call

Although each client is fully responsible for monitoring their trading account activity, XM follows a margin call policy to guarantee that your maximum possible risk does not exceed your account equity.

As soon as your account equity drops below 50% of the margin needed to maintain your open positions, we will attempt to notify you with a margin call warning you that you do not have sufficient equity to support open positions.

Stop-Out Level

The stop-out level refers to the equity level at which your open positions get automatically closed. The stop-out level in a client's account is reached when the equity in the trading account is equal or falls below 20% of the required margin.

FBS

Margin Call
is an allowed margin level (40% and lower). At this point, the company is entitled but not liable to close all the open positions of a client due to the lack of free margin.

Stop Out
is a minimal allowed level of margin (20% and lower) at which the trading program will start to close client’s open positions one by one (the first position closed is the one with the biggest floating loss) to prevent further losses that lead to negative balance (below 0 USD).

EXNESS

Here is everything you need to know about the Margin Call and Stop Out levels for the various accounts we offer, at a glance:

Account	Margin Call	Stop Out
Standard Cent	60%	0%
Standard	60%	0%*
Pro	30%	0%*
Zero	30%	0%*
Raw Spread	30%	0%*

Mid-price stop out

This stop out approach calculates a “virtual mid-price equity” instead of real equity, which can lead to fewer instances of stop out in sudden spread widening; sudden spread widening occurs when a bid price goes down as the asking price goes up while the middle price (mid-price) stays the same.

Mid-price stop-out can help delay a stop-out until both mid-price equity and real equity create stop-out conditions.

In detail

Mid-price stop out evaluates stop out using not only bid or ask prices but divides this by 2 (bid+ask /2), providing a discount of half the spread for each open order (calculated as spread x number of lots /2). For account types with a commission, half of one side of the commission is provided along with this half current spread discount.

Example:

A trader has an account balance of USD 100.

- Their first order is 1 lot BUY with a floating loss of USD 40.

- Their second order is 1.5 lots BUY with a floating loss of USD 60.

- The current spread is USD 10.

Under normal conditions, these orders will result in stop-out because the equity is calculated to be 0. (100 account balance - 40 floating loss - 60 floating loss = 0 account balance). However, with mid-price stop out these orders are calculated differently (keeping in mind the USD 10 spread).

- The first order receives spread x lots / 2 = USD 10 x 1 / 2 = USD 5 discounted.

- The second order receives spread x lots / 2 = USD 10 x 1.5 / 2 = USD 7.5 discounted.

Under mid-price stop out conditions, the virtual middle price equity calculates the stop out as: 100 (equity) - 40 (floating loss) + 5 (discount) - 60 (floating loss) + 7.5 (discount) = -87.5 With an account balance of USD 100, returning USD -87.5 will not result in a stop out.

Should spread widen suddenly and symmetrically, with -5 for bid and -5 for ask resulting in a spread of USD 20, the virtual mid-price equity will remain USD -87.5 where: 100 (equity) - 45 (floating loss) + 10 (new discount) - 67.5 (floating loss) +15 (new discount) = -87.5

Therefore with mid-price stop out, the stop out is delayed until the virtual mid-price equity and real equity both return a stop out condition.