Stop-out risk during spread widening on high leverage accounts
Posted: Sat Oct 31, 2026 7:32 pm
High leverage lets a scalper trade large size with tiny margin. It also leaves very little buffer when the spread widens.
Margin level is calculated using equity, and equity on open positions is marked to the closing side of the quote. If a spread jumps from 0.2 to 4 pips on a pair, equity on a large position drops instantly, even when the mid-price hasn't moved. On an account using most of its margin, that can trigger a stop-out.
This happens during rollover and during news. The position closes at a bad price, and the account takes a hit far bigger than the trade plan expected.
A sensible habit is to keep free margin well above what the plan needs, and certainly not to run near the margin call level on pairs prone to spread spikes.
Leverage is a tool, but the real limit is how large a spread shock the account can survive.
How much free margin do you typically keep during a session?
Margin level is calculated using equity, and equity on open positions is marked to the closing side of the quote. If a spread jumps from 0.2 to 4 pips on a pair, equity on a large position drops instantly, even when the mid-price hasn't moved. On an account using most of its margin, that can trigger a stop-out.
This happens during rollover and during news. The position closes at a bad price, and the account takes a hit far bigger than the trade plan expected.
A sensible habit is to keep free margin well above what the plan needs, and certainly not to run near the margin call level on pairs prone to spread spikes.
Leverage is a tool, but the real limit is how large a spread shock the account can survive.
How much free margin do you typically keep during a session?