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The UK 50% Close-Out Rule
3:06 · 8 chapters · Forex lessons, part 120
What you'll learn
Below 50% margin level, UK firms must close your trades, and retail clients can't lose more than their account. Here's how both rules work.
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
- What margin level means and how the 50% close-out rule works
- Key point 2
- A worked example in pounds: when a £1,500 account gets closed out
- Key point 3
- Why weekend gaps can take an account below zero
- Key point 4
- What negative balance protection covers, and what it doesn't
- Key point 5
- How professional and offshore accounts differ
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
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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.