can an unrealized loss result in a stop out ?

radaway

Trader
Oct 5, 2016
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can an unrealized loss(ongoing) result in a stop out ?
(or is it only after the realisation)

Thx.
 

radaway

Trader
Oct 5, 2016
39
1
19
and one more thing:

Q2: can an unrealized loss > equity ?

or

unrealized loss > Margin ?

or

unrealized loss > Free Margin ?


Thx.

*stop out = 50 % in the above example
 

Enivid

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radaway

Trader
Oct 5, 2016
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Thanks Enivid
thus, if unrealized loss > Free Margin , then this is an automatic 'stop-out' . right ?

+++++++++++++++++++++++++++++++++++++++++++++++++++
My Broker mentions this on a 50 % stop out :
upload_2016-12-1_19-58-25.png

in normal lingo , can I be explained this with a simple example please. ?
 

Enivid

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Margin Level = Equity/UsedMargin ratio.

Example:
You have $1,000 account, stop-out = 50%.
You open a trade using $200 margin.
Its unrealized (paper) loss reaches $900.
Now, your Equity = $100 while UsedMargin = $200. $100/$200 = 50% - stop-out triggered.
 
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radaway

Trader
Oct 5, 2016
39
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19
is 'used' margin = Margin or 'Free margin' ?
I am aware of the jargons :Margin & 'Free margin' , but not the 'used Margin'
upload_2016-12-1_21-20-48.png
Thx. for the clarification