Margin Call Level

[tombl0ck]

There is the description in every forex broker section on your site:

Margin call level 25%
Stop-out level 20%

Please explain,I have read about it in a book and online but still dont get it clearly thanks

 

[Enivid]

Margin call level of 25% means that if your account equity drops to or below 25% of the margin currently used to hold open positions in your account, you get a margin call.

Stop-out level of 20% means that if your account equity drops to or below 20% of the margin currently used to hold open positions in your account, your positions will be closed automatically. The broker will close enough positions to return your equity/margin ratio above the stop-out level.

You can read more about these levels and see more examples here:
https://www.earnforex.com/guides/stop-out-level-vs-margin-call/

 

[tombl0ck]

Thanks)

 

[ituglobal]

There is the description in every forex broker section on your site:

Please explain,I have read about it in a book and online but still dont get it clearly thanks

You may need to ask your broker about this, or other reliable sources. I'm sure you can get a good response.

 

[Rambo35]

You may need to ask your broker about this, or other reliable sources. I'm sure you can get a good response.

I think the question was answered already.

 

[ituglobal]

Ok. That's cool.

 

[Ary Barroso]

Margin call level of 25% means that if your account equity drops to or below 25% of the margin currently used to hold open positions in your account, you get a margin call.

Stop-out level of 20% means that if your account equity drops to or below 20% of the margin currently used to hold open positions in your account, your positions will be closed automatically. The broker will close enough positions to return your equity/margin ratio above the stop-out level.

You can read more about these levels and see more examples here:
https://www.earnforex.com/guides/stop-out-level-vs-margin-call/

Exactly, thank you very much for your proper answer! Actually, most of the new traders are confused about MC, definitely when I was a new trader then I was also confused.