Know the pip distance to your stop-out before the stop-out finds it

[Amanhasnoname]

Margin call and stop-out are two different thresholds, and brokers set them at different margin levels. Common patterns are a warning around 100 percent and forced closure at something like 50 percent, though plenty of brokers go lower. Check the real numbers in the account terms.

Margin level is equity divided by used margin. Take a $500 account with 2 lots open at 1:500, so about $400 used margin. A stop-out at 50 percent triggers when equity falls to $200. That is a $300 floating loss. At $20 per pip for 2 lots, it takes only 15 pips of adverse movement. A scalper with 5 pip stops would never expect that, but a failed stop, a gap or a stuck platform on a news spike can deliver it.

Worth testing and noting:

- Pip distance to stop-out for the largest stack the strategy ever takes, not for a single ticket.
- Which position the platform closes first. Many close the largest loser, which can break a deliberate hedge or a paired trade.
- Whether the level is evaluated on equity using wide spreads. A spread spike can push the number down without the market moving.

If that pip distance is less than three times the stop distance, size is too big for the account, whatever the margin meter says.

Which stop-out level does your account actually use, and when did you last confirm it?