IC Markets
IC Markets Stop Out and Margin Call Levels Explained
IC's margin call level is 100% and its stop-out level is 50%. Below that, the platform closes positions for you, largest loser first, and a gap can still push the account negative. Here is how the numbers work, with examples.
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IC Markets has a margin call level of 100% and a stop-out level of 50%. Both are measured by your margin level: your equity divided by the margin your open positions use, times 100. At 100% you are warned; at 50% the platform starts closing positions automatically. On MetaTrader 4 it closes the largest losing position first, and on cTrader a "Smart Stop Out" partly closes positions until the margin level recovers.
None of this guarantees you can't lose more than your deposit. IC's Help Centre is explicit: it will try to close positions at 50%, but if prices gap, the account can go negative, and at IC's global company you bear that loss. Learn the numbers and you can stay well away from them.
| Margin call | 100% margin level |
|---|---|
| Stop out | 50% margin level |
| Margin level formula | Equity ÷ used margin × 100 |
| Equity | Balance + open profit or loss |
| MT4 close order | Largest losing position first |
| Negative balance protection | Not guaranteed at the global company |
The terms you need
| Term | What it means at IC |
|---|---|
| Balance | Deposits plus closed profits, minus closed losses |
| Equity | Balance plus the profit or loss on open trades |
| Used margin | The money your open positions tie up |
| Free margin | Money available to open trades or absorb losses; it rises when trades are in profit |
| Margin level | Equity divided by used margin, times 100 |
How IC's margin call and stop out work
A worked example makes the levels concrete. Say you have $2,000 in your account and open a position that needs $400 of margin. Your margin level is 2,000 ÷ 400 × 100 = 500%. Nothing happens while it stays above 100%.
| Equity | Used margin | Margin level | What happens |
|---|---|---|---|
| $2,000 | $400 | 500% | Normal trading |
| $800 | $400 | 200% | Warning sign; free margin shrinking |
| $400 | $400 | 100% | Margin call: positions change colour in the platform |
| $200 | $400 | 50% | Stop out: the platform starts closing positions |
At the margin call you can still act: close or reduce positions, or deposit more. IC's Help Centre says you'll see positions change colour as a warning. At the stop out, the decision is taken for you at the next available price.
What happens at the stop out
On MetaTrader 4, IC's platform closes positions in order of the largest losing position to the smallest until the margin level is back above 50%. cTrader works differently: IC uses Smart Stop Out there, which closes only as much as needed from the largest position, partly if possible, to restore the margin level and keep the rest of your trades open as long as it can.
Hedged positions are treated differently by platform. On MetaTrader, a perfectly hedged account that needs no margin keeps its positions open. cTrader, by contrast, charges margin on the side with the larger volume even if the account is fully hedged, so a hedge doesn't protect you from a stop out there.
Can your balance go negative at IC?
Yes. A stop out is a market order, filled at the next available price. When a market gaps over a weekend, on a holiday or after a big announcement, that price can be far beyond the level where your margin ran out. IC's Help Centre says that if losses on stopped-out positions exceed your balance, the account can go negative, and that at its global company "you will bear the negative consequences".
If it happens, IC recommends contacting its support team to discuss the options. Retail clients of IC's Australian and EU companies trade under different local rules. Our IC Markets regulation guide explains the difference between the companies.
The stop out protects the broker as much as you. Plan to be out of a trade long before 100%, with a stop loss placed where your idea is wrong, not where your margin runs out.
Why margin can suddenly jump
Your margin level can fall without the price moving, because IC's leverage is dynamic. Around major news, market closes and weekends, IC applies Higher Margin Requirements to new positions. Gold and silver positions opened in the weekend window get 1:200, and margin on 24-hour stock positions is recalculated as their leverage steps down from 1:20 to 1:5. Our leverage guide sets out each rule.
How to stay far from the stop out
- Risk 1% to 2% of the account per trade, sized from your stop loss, not from free margin.
- Keep your margin level in the hundreds, not near 100%. Several small positions add up.
- Set account leverage below the maximum in the Client Area, so you can't open oversized trades by accident.
- Reduce exposure before weekends and major releases, when gaps are most likely.
- Watch correlated positions: long EUR/USD and long GBP/USD can fall together.
Our margin calculator shows what a position ties up before you place it, and the position size calculator sizes trades from your stop.
A second example: when leverage changes
Margin level can drop without any loss at all. Suppose you plan to open a new position during a Higher Margin Requirement window before a central bank decision. The same trade that would need $100 of margin at normal leverage might need several times that, because IC lowers leverage for new positions during those windows. If you open it anyway, your margin level starts much lower, and a normal move against you reaches the margin call sooner. Open positions usually keep the leverage they started with, but 24-hour stock CFDs are recalculated.
Traders often talk about the stop-out level as if it were a stop loss. It isn't. It is the point where the broker stops trusting your account, and at a gap it can be filled well past that point. Your own stop should always come first.
Mauricio had $1,000 at IC and held three gold positions using most of his free margin, with his margin level around 150%. A sharp move on a Friday afternoon took it through 50%, and MT4 closed his largest loser first, then a second position. He lost over $600 in minutes, and these days he keeps his margin level above 1,000% and never holds more than one gold position at a time.
Frequently asked
What is the IC Markets stop out level?
50%. When your margin level (equity divided by used margin, times 100) falls below 50%, IC's platform starts closing positions automatically. On MetaTrader 4 the largest losing position is closed first.
What is the IC Markets margin call level?
100%. You are in margin call when your equity equals the margin your open positions require. Positions change colour in the platform as a warning to reduce exposure or add funds.
Does IC Markets have negative balance protection?
Not as a guarantee at its global company. IC says it will try to close positions at the 50% stop-out level but can't guarantee the account won't go negative in a gap, and clients bear the losses.
What is Smart Stop Out on cTrader?
It is cTrader's stop-out logic at IC. Instead of closing whole positions, it closes only as much as needed, starting with the largest position, to bring the margin level back above the stop-out level.
How is margin level calculated at IC Markets?
Margin level = equity ÷ used margin × 100. Equity is your balance plus the profit or loss on open trades. For example, $2,000 of equity with $400 of margin in use is a 500% margin level.
What should I do if my IC account goes negative?
IC recommends contacting its support team to discuss the options available. Clients of IC's global company are responsible for negative balances, so keep leverage and position sizes low to avoid one.
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