IC Markets
FXTM Stop Out and Margin Call: 50/20 on Rewards, 80/50 on Advantage
FXTM's Micro, Rewards Plus and Rewards accounts warn at a 50% margin level and stop out at 20%. Advantage is stricter, warning at 80% and stopping out at 50%. Here is how margin level is calculated, what happens to hedged trades and how to stay clear.
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FXTM sets its margin call and stop out levels by account. On Micro, Rewards Plus and Rewards, a margin call warning comes at a 50% margin level and the stop out at 20%. Advantage sets both higher: the margin call at 80% and the stop out at 50%. Neither applies to Advantage Stocks, which uses no leverage.
Margin level is equity divided by used margin, times 100. FXTM's Help Centre says any margin level above 100% is generally considered healthy.
| Micro | Margin call 50%, stop out 20% |
|---|---|
| Rewards Plus | Same 50% / 20% |
| Rewards | Also 50% / 20% |
| Advantage | 80% / 50% |
| Advantage Stocks | No margin call or stop out |
| Formula | Equity / used margin x 100 |
Margin call and stop out by account
| Account | Margin call | Stop out | Leverage |
|---|---|---|---|
| Micro | 50% | 20% | Up to 1:1000 |
| Rewards Plus | 50% | 20% | Up to 1:5000 |
| Rewards | 50% | 20% | Up to 1:5000 |
| Advantage | 80% | 50% | Up to 1:3000 |
FXTM's Help Centre still lists the older Edge account at 80% and 50%. If you hold an account under an older name, check its levels in your dashboard.
Working out margin level
FXTM's own example: with $8,000 equity and $2,000 used margin, margin level is $8,000 / $2,000 x 100 = 400%. If a $5,000 balance has $3,800 of open losses and $2,000 used margin, the margin level is ($5,000 - $3,800) / $2,000 x 100 = 60%. On a Rewards account that is above the 50% margin call; on Advantage it is already past the 80% warning and close to the 50% stop out.
| Equity | Used margin | Margin level | Rewards accounts | Advantage |
|---|---|---|---|---|
| $4,000 | $1,000 | 400% | Fine | No action |
| $900 | $1,000 | 90% | Fine | Above call |
| $700 | $1,000 | 70% | Above call | Margin call |
| $400 | $1,000 | 40% | Margin call | Stopped out |
| $150 | $1,000 | 15% | Stopped out | Already stopped out |
What happens at a stop out
When equity falls to the stop out level, the platform may start closing your open trades automatically to stop further losses. FXTM says the stop out first closes the positions with the biggest loss. Once those are closed, the remaining trades are rechecked.
Price gaps at the weekly open or after big news can push an account straight through the stop out level. Trades close at the next available price, so losses can exceed what the stop out percentage suggests.
Hedged positions can still stop out
FXTM's Help Centre explains a risk many traders miss. Fully hedged positions need no margin, but they can still be stopped out if equity falls below zero. That can happen through rollover costs, exchange rate moves or wider spreads: sell trades close at the ask and buy trades at the bid, so when spreads widen, both sides can show a loss. If the stop out closes the leg with the biggest loss first, the hedge becomes unbalanced and the rest of the positions can follow.
Leverage changes and margin
FXTM's Dynamic Margin Requirement lowers maximum leverage for new trades around high-impact news, daily breaks on metals and oil, and the Friday close. Existing positions keep their margin, but new trades in those windows need more of it, which reduces free margin faster. See our FXTM leverage guide.
How to avoid a stop out
- Watch margin level in the FXTM app's account overview or MetaTrader's Trade tab.
- Set a stop loss on every trade so losses end well before the margin call.
- Use less leverage than the maximum; floating tiers cut it anyway on bigger positions.
- Keep free margin for spread widening and DMR periods.
- Don't withdraw large amounts while trades are open.
- Remember Advantage closes trades at 50%, much earlier than Rewards accounts.
Negative balances
FXTM's 'Trade is disabled' article mentions that an account with credit can reach a 'credit stop-out level' and show a negative balance. The pages we checked don't spell out a negative balance protection policy for Exinity Limited, so read the client agreement and don't rely on the stop out alone. Our FXTM regulation guide covers the companies and protections.
Free margin explained
Free margin is equity minus used margin, the money available for new trades and to absorb losses. FXTM's example: Joe has $10,000 and opens 2 lots of EURUSD at 1.2000 with 1:50 leverage. The position is worth $240,000, so the margin is $4,800 and free margin $5,200. If EURUSD falls to 1.1905, the loss is $2,280, equity drops to $7,720 and free margin to $2,920.
As free margin shrinks, so does margin level. In Joe's case, margin level falls from about 208% to about 161%. That is still healthy on any FXTM account, but two more moves of the same size would push him below Advantage's 80% margin call.
The FXTM app shows margin level at the top of the home screen, next to balance, equity, open profit or loss and free margin, with a question-mark icon that explains each term. Glancing at it before every new trade is the simplest habit for staying well away from both the margin call and the stop out.
Set an alert for yourself well above the broker's levels. A personal floor of 200% or 300% gives you time to act before FXTM's warning arrives.
Advantage's 50% stop out is one of the higher levels among popular brokers. It costs you room to breathe, but it also closes losing trades with more equity left. Know which level you are on before you size a position.
Priya switched from a Rewards account to Advantage for the lower costs, but kept trading the same size. A sharp EURUSD move took her margin level to 55%, close to Advantage's 50% stop out. She halved her position sizes afterwards to keep her margin level above 200%.
Frequently asked
What is FXTM's stop out level?
20% on Micro, Rewards Plus and Rewards; 50% on Advantage. Advantage Stocks has no stop out.
What is FXTM's margin call level?
50% on Micro, Rewards Plus and Rewards; 80% on Advantage.
How is margin level calculated at FXTM?
Equity divided by used margin, times 100. FXTM considers above 100% healthy.
Which positions does FXTM close first at stop out?
According to FXTM, the stop out first closes the positions with the biggest loss.
Can hedged positions be stopped out at FXTM?
Yes. Hedged trades need no margin but can stop out if equity falls below zero from swaps, exchange rates or wider spreads.
Does Advantage Stocks have a stop out?
No. It is a cash account at 1:1, so there are no margin calls or stop outs.
Why does Advantage stop out earlier?
FXTM sets Advantage's levels at 80% margin call and 50% stop out, higher than the 50% and 20% on its spread accounts.
Does FXTM have negative balance protection?
The pages we checked don't describe a negative balance protection policy for Exinity Limited. Check the client agreement.
Where can I see my FXTM margin level?
In the FXTM app's account overview and in MetaTrader's Trade tab, along with balance, equity and free margin.
Does FXTM warn me before a stop out?
Yes. The margin call level, 50% on Rewards accounts and 80% on Advantage, acts as a warning before the stop out.
Can FXTM close my trades before the stop out level?
Automatic closing starts at the stop out level for your account, 20% or 50%. Above that, trades stay open unless you close them or a stop loss triggers.
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