margin call vs stop-out, two numbers worth knowing
Posted: Fri Oct 30, 2026 9:17 am
Margin level is equity divided by used margin, shown as a percentage. Brokers set two thresholds on it.
Margin call level: the warning. At 100 percent, say, the platform flags the account and may block new trades.
Stop-out level: the forced closure. At 50 percent, say, the broker starts closing positions, often the largest loser first, depending on the platform and the rules.
Worked example with invented figures. Equity 1,000, used margin 500, margin level 200 percent. A floating loss of 500 takes equity to 500 and the level to 100 percent. Another 250 of losses pushes equity to 250, the level to 50 percent, and positions begin closing.
Scalpers stacking several trades on high leverage can get there faster than expected, since each position adds margin while floating losses eat equity. And a spread spike or slippage can drop the level further than the chart suggests.
What margin call and stop-out levels does your account use, and has it ever come close?
Margin call level: the warning. At 100 percent, say, the platform flags the account and may block new trades.
Stop-out level: the forced closure. At 50 percent, say, the broker starts closing positions, often the largest loser first, depending on the platform and the rules.
Worked example with invented figures. Equity 1,000, used margin 500, margin level 200 percent. A floating loss of 500 takes equity to 500 and the level to 100 percent. Another 250 of losses pushes equity to 250, the level to 50 percent, and positions begin closing.
Scalpers stacking several trades on high leverage can get there faster than expected, since each position adds margin while floating losses eat equity. And a spread spike or slippage can drop the level further than the chart suggests.
What margin call and stop-out levels does your account use, and has it ever come close?