Margin Call Level

tombl0ck

Trader
Jan 3, 2013
10
0
12
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

Administrator
Staff member
Nov 30, 2008
16,146
838
144
Odessa
www.earnforex.com
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/
 
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ituglobal

Master Trader
Apr 17, 2013
475
23
59
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

Confirmed PaxForex Representative
Apr 22, 2013
909
22
32
Canada
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.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
67
39
33
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.