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Margin Call and Stop Out
2:36 · 8 chapters · Forex basics, part 11
What you'll learn
Margin call vs stop out, explained with numbers: margin level = equity / used margin x 100, and how to stay far away from it.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- Balance, equity, used margin and free margin
- Key point 2
- Margin level = equity / used margin x 100
- Key point 3
- Common example levels: 100% margin call, 50% stop-out (vary by broker)
- Key point 4
- Worked example with $500 used margin
- Key point 5
- UK and EU retail clients have negative balance protection
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.