Understanding Margin Call and Stop-Out Levels

In trading, Margin Call and Stop-Out Levels are crucial mechanisms to manage risk and protect your account balance. Here's what you need to know:

100% Margin Call Level

When your Margin Level hits 100%, you won’t be able to open new trades. This prevents further exposure and helps protect your account.

70% Stop-Out Level

If your Margin Level drops to 70%, a Stop-Out occurs. Open trades will begin to close automatically to restore your Margin Level to healthier levels.

1. Margin Level Formula
   
   Use this formula to track your Margin Level:
   Margin Level = (Equity / Margin) x 100

2. How to Maintain Healthy Margin Levels

   • Increase Equity: Add more funds to your account.
   • Reduce Margin: Lower your exposure by reducing lot sizes on open positions.

By monitoring your Margin Level and managing your trades effectively, you can avoid margin calls and stop-outs, ensuring a more sustainable trading experience.