Negative price movement can potentially lead to a margin call and the subsequent triggering of an automated margin close-out of positions. In the event that market conditions are unfavorable to you, we will set a stop-out level to reduce your maximum loss. This means that we will set a threshold of margin value, below which positions are automatically closed. This stop out is set at 30% of the margin

For example, based on a margin of 100, the position would be automatically closed if the net equity* reaches 30 or lower.

In a nutshell, once your account net equity drops below 100% of the initial margin required to establish the open position(s), the MT4/MT5 changes colour, to red, to indicate that you are close to or, on margin call. Once your account net equity drops below 30% of the margin requirements (depending on entity and client classification), it will close your trades one by one, starting with the trade with the biggest loss.

*Net equity: Defined as the sum of the client’s net profit and loss on an open position(s) and client’s deposited funds.