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AvaTrade Stop Out and Margin Call: 50% and 20% Levels, and MarginControl
AvaTrade closes MetaTrader positions when equity falls to 50% of used margin for retail clients, or 20% for professional and non-EU clients, starting with the biggest loser. Its MarginControl tool can top up your account automatically. Here is how stop out works and how to avoid it.
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AvaTrade uses the terms margin call, MC3 and stop out for the same event. Its Help Center says that on MT4 and MT5 accounts, a stop out is triggered when your equity drops to 50% of your used margin if you are a retail client, or 20% if you are a professional or non-EU client. When it happens, AvaTrade closes your largest losing position first, then others, until your equity is back above the level.
Because all AvaTrade accounts are leveraged, the responsibility to keep enough margin sits with you. AvaTrade does offer a tool, MarginControl, that can help.
| Retail stop out (MT4/MT5) | Equity at 50% of used margin |
|---|---|
| Professional and non-EU | Equity at 20% of used margin |
| Order of closing | Largest losing position first |
| AvaOptions | Net Liquidation Value below 50% of required margin |
| Negative balance | Refunded by AvaTrade |
| MarginControl | Automatic card top-ups to avoid stop out |
Equity, margin and margin level
| Term | AvaTrade's definition |
|---|---|
| Equity | Balance plus floating profit or loss on open trades |
| Used margin | Funds held to keep your positions open |
| Usable margin | Equity minus used margin, available for new trades |
| Stop out | Equity falls to 50% (retail) or 20% of used margin |
A worked example
Say a retail client has a $2,000 balance and opens positions using $1,000 of margin. The stop out level is 50% of used margin, or $500 of equity. In total, the account can lose $1,500 before AvaTrade starts closing positions. For a non-EU client at 20%, the line is $200 of equity, so the account can lose $1,800 first.
| Retail (50%) | Professional or non-EU (20%) | |
|---|---|---|
| Balance | $2,000 | $2,000 |
| Used margin | $1,000 | $1,000 |
| Stop out at equity of | $500 | $200 |
| Loss before stop out | $1,500 | $1,800 |
A lower stop out level gives positions more room, but it also means a deeper loss before anything is closed.
AvaOptions accounts
Options accounts use a different measure. If your Net Liquidation Value falls below 50% of required margin, AvaTrade triggers a stop out and closes all positions. Margin on AvaOptions is calculated with the SPAN method. Our AvaTrade options guide explains it.
MarginControl: automatic top-ups
MarginControl is AvaTrade's tool for avoiding stop outs. It monitors your equity in real time and, when it reaches a level you choose as a percentage of used margin, automatically deposits a preset amount from a verified credit card.
- Open the MarginControl sub-menu in your account area.
- Choose the trading account.
- Select a credit card and complete a $0 verification transaction.
- Set the deposit amount, a maximum daily budget and how long the plan runs.
- Save the plan to activate it.
- A minimum deposit of $100 is required to activate it.
- AvaTrade charges no extra fee, though your card provider's usual charges may apply.
- It doesn't change spreads, swaps or other trading costs.
- MarginControl doesn't guarantee against losses; it only helps keep margin above the stop out level.
MarginControl adds money to a losing account. Set a daily budget you can genuinely afford, because topping up a losing position can turn a small loss into a large one.
How to avoid a stop out
AvaTrade's own list is short: manage stop losses, reduce position size, deposit more funds or open a hedge. In practice:
- Place a stop loss on every trade so losses are closed long before equity nears the stop out level.
- Keep used margin to a fraction of your equity; trade smaller sizes rather than the maximum.
- Watch for news, when margin requirements can rise and prices gap.
- Remember that stop losses aren't guaranteed and can slip in fast markets.
Negative balance protection
If a sharp move pushes your account below zero before positions can be closed, AvaTrade says it refunds the difference through a Negative Balance Adjustment, so you can't owe it money. Our AvaTrade regulation guide covers the wider protections.
Margin call and stop out: one event
Some brokers warn you with a margin call before a separate stop out. AvaTrade's Help Center uses margin call, MC3 and stop out for the same thing: the point at which positions are closed. Don't wait for a warning; watch your margin level yourself in the platform.
Hedging and margin
AvaTrade allows you to hold a long and a short position on the same instrument at the same time, and lists opening a hedge as one way to reduce the risk of a stop out. On MT4, you need enough free margin to cover the spread cost of the hedge. A hedge freezes your current loss rather than removing it.
A daily margin routine
- Check your margin level before the main sessions and before news.
- Keep used margin well below your equity.
- Reduce positions that have grown too large for the account.
- Confirm every open position has a stop loss.
Stop outs, robots and copied trades
Automated trading uses the same margin. AvaTrade's Help Center says the usual reason an Expert Advisor stops working is insufficient margin, and an EA that keeps sending orders without margin can be disabled. Copied trades from AvaSocial or DupliTrade also draw on your account's margin. Before running either, set a maximum size and keep a margin buffer. Our AvaTrade copy trading guide covers the controls.
A stop out is the broker's last line, not yours. If you ever get close to AvaTrade's 50% or 20% level, the position was too large for the account long before the market moved.
Chen, a non-EU client, held 1 lot of gold at AvaTrade with little free margin. A sharp drop took his equity towards 20% of used margin and the position was closed. He now keeps used margin under 20% of equity and sets a stop on every gold trade.
Frequently asked
What is the stop out level at AvaTrade?
On MT4 and MT5, 50% of used margin for retail clients and 20% for professional and non-EU clients.
Which positions does AvaTrade close first?
The largest losing position, followed by others, until equity returns above the stop out level.
What is AvaTrade MarginControl?
A tool that automatically deposits a preset amount from a verified credit card when your equity falls to a level you set, to help avoid stop outs.
Does MarginControl cost anything?
AvaTrade charges no extra fee, though standard card charges may apply. A $100 minimum deposit is required to activate it.
Can my AvaTrade account go negative?
AvaTrade says it refunds any negative balance through a Negative Balance Adjustment.
What is the stop out on AvaOptions?
When Net Liquidation Value falls below 50% of required margin, all positions are closed.
Is a margin call the same as a stop out at AvaTrade?
Yes. AvaTrade uses margin call, MC3 and stop out for the same event.
Does AvaTrade guarantee stop losses?
No. AvaTrade guarantees to close the trade at the next best available price if slippage occurs.
Do I need a credit card for AvaTrade MarginControl?
AvaTrade's set-up steps use a credit card verified with a $0 transaction, which then funds the automatic deposits.
Does MarginControl change my spreads or swaps?
No. AvaTrade says it doesn't affect spreads, swaps or other trading costs.
How can I avoid a stop out at AvaTrade?
AvaTrade suggests managing stop losses, reducing position size, depositing more funds or opening a hedge. Keeping used margin well below equity is the simplest safeguard.
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