Trade Your Own Way
There’s an Advanced Markets account type for everyone. Discover new ways of trading in a style that suits your own custom trading experience.
Account Types
We have three distinct account types to suit your desired terms and individual trading goals.
*Advanced Markets Stop out Level : Given the volatile nature of the market, clients should utilize the platform on their mobile or PC to monitor their positions, and each client is fully responsible for monitoring their trading account activity, including open positions and margin levels. Our FAQ section below will provide you with in-depth answers to common questions, ensuring that you are equipped with the knowledge to navigate these concepts with confidence.
When the margin level drops below 100%, traders lose ability to increase exposure. which is known as a Margin Call Level. You can still reduce your exposure by closing some or all your positions. If the margin level keeps declining to or below your stop out level, an automatic process in MT5 will be initiated causing the positions to be liquidated. This entails the closure of positions, prioritizing those with the greatest loss to profit ratio. The process continues until the remaining exposure attains a level adequate to accommodate any active positions.
Margin Level refers to the ratio of your account’s equity to the used margin, expressed as a percentage. It gives you an indication of how much usable margin you have left to support your open positions.
Stop out Level is a predefined margin level set by your broker. When your Margin Level falls to or below this Stop out Level, it triggers an automatic process where the broker begins closing your open positions to prevent your account from falling into negative balance territory. This is done to protect both the trader and the broker from potential losses.
In margin trading, margin level indicates the difference between accessible equity and tied-up funds (used margin). Keeping it above the Margin Call Level of 100% is crucial. Traders need to maintain the margin level above 100% so new positions can be opened while maintaining existing ones. However, if there are losses, the account balance and the available equity will decline resulting in reduced margin level.
Traders can increase their positions by using leverage on their trades. A forex broker requires a percentage of the position (used margin) to keep that position open – therefore the margin level is an essential means that allows traders to monitor their trading funds and ensure that their account balances do not run out. If open positions are incurring losses and the margin level goes below the Stop Out level, the broker will begin automatically closing positions until the margin level rises above that point. This is known as a Stop Out, and the level where the process begins is the Stop Out level.
If your account reaches the Stop Out Level, the trading platform will start closing your positions. This process continues until your account’s equity rises above the stop out level or until all positions are closed. It’s important to monitor your account and manage your trades to avoid reaching this level.
To prevent reaching the stop out level, you can:
- Keep a close watch on your account’s margin level and equity,
- Use risk management tools like setting appropriate stop-loss orders,
- Avoid overleveraging by not opening positions that could deplete your margin too quickly.
The Stop Out Level for all account types is set at 50% of the margin level.
For example, your starting deposit is 10,000 USD and your account is set at 50% Stop Out level and a leverage of 1:100. If you place a 2 lots (200K) trade on USDJPY, your Used Margin will be 2000 USD.
Once your Equity falls to or below 1000 USD (which is 50% of your Used Margin), meaning your Margin Level has breached 50%, your trade will automatically be closed. In case there are multiple trades, the system will start by closing out the largest losing position to bring you back above the Stop Out level. This process is repeated every time the Margin Level breaches the 50% Stop Out level.
Traders often use hedge (opposing) positions to alleviate losses from a losing trade. There is no margin requirement for hedge positions, which means you can open an opposing trade on the same pair without this affecting your used margin.
Nevertheless, it’s advisable to avoid hedging when your equity is at a low level, as a widening spread might lead to a margin level of 50%. This is due to the fact that the profit or loss on Buy positions depends on the Bid price, while Sell positions are affected by the Ask price. Consequently, an expansion in the bid/ask spread could amplify unrealized losses or diminish unrealized gains, despite having hedged positions.
Furthermore, if you are already near the stop out level, fluctuations in the exchange rate between the trading pair or currency of the asset and your base currency can influence your unrealized profit and loss, potentially leading to a Stop Out. Spread widening is a common occurrence in times such as market open/close, in periods of high volatility as well as during big economic/political news that impact the markets.
If you don’t have access to a forex margin calculator, here’s the formula for calculating the margin requirement:
Required Margin = (Trade Size x Contract Size x Open Price)/Leverage.
Example: If you buy 1 Lot of EUR/USD at USD1,1800 with a leverage of 100:1, the Required Margin will be: (1 x USD100,00 x USD1,1800) / 100 = USD1,180
When the margin level drops below 100%, traders lose ability to increase exposure. which is known as a Margin Call Level. You can still reduce your exposure by closing some or all your positions. If the margin level keeps declining to or below your stop out level, an automatic process in MT5 will be initiated causing the positions to be liquidated. This entails the closure of positions, prioritizing those with the greatest loss to profit ratio. The process continues until the remaining exposure attains a level adequate to accommodate any active positions.
Margin Level refers to the ratio of your account’s equity to the used margin, expressed as a percentage. It gives you an indication of how much usable margin you have left to support your open positions.
Stop out Level is a predefined margin level set by your broker. When your Margin Level falls to or below this Stop out Level, it triggers an automatic process where the broker begins closing your open positions to prevent your account from falling into negative balance territory. This is done to protect both the trader and the broker from potential losses.
In margin trading, margin level indicates the difference between accessible equity and tied-up funds (used margin). Keeping it above the Margin Call Level of 100% is crucial. Traders need to maintain the margin level above 100% so new positions can be opened while maintaining existing ones. However, if there are losses, the account balance and the available equity will decline resulting in reduced margin level.
Traders can increase their positions by using leverage on their trades. A forex broker requires a percentage of the position (used margin) to keep that position open – therefore the margin level is an essential means that allows traders to monitor their trading funds and ensure that their account balances do not run out. If open positions are incurring losses and the margin level goes below the Stop Out level, the broker will begin automatically closing positions until the margin level rises above that point. This is known as a Stop Out, and the level where the process begins is the Stop Out level.
If your account reaches the Stop Out Level, the trading platform will start closing your positions. This process continues until your account’s equity rises above the stop out level or until all positions are closed. It’s important to monitor your account and manage your trades to avoid reaching this level.
To prevent reaching the stop out level, you can:
- Keep a close watch on your account’s margin level and equity,
- Use risk management tools like setting appropriate stop-loss orders,
- Avoid overleveraging by not opening positions that could deplete your margin too quickly.
The Stop Out Level for all account types is set at 50% of the margin level.
For example, your starting deposit is 10,000 USD and your account is set at 50% Stop Out level and a leverage of 1:100. If you place a 2 lots (200K) trade on USDJPY, your Used Margin will be 2000 USD.
Once your Equity falls to or below 1000 USD (which is 50% of your Used Margin), meaning your Margin Level has breached 50%, your trade will automatically be closed. In case there are multiple trades, the system will start by closing out the largest losing position to bring you back above the Stop Out level. This process is repeated every time the Margin Level breaches the 50% Stop Out level.
Traders often use hedge (opposing) positions to alleviate losses from a losing trade. There is no margin requirement for hedge positions, which means you can open an opposing trade on the same pair without this affecting your used margin.
Nevertheless, it’s advisable to avoid hedging when your equity is at a low level, as a widening spread might lead to a margin level of 50%. This is due to the fact that the profit or loss on Buy positions depends on the Bid price, while Sell positions are affected by the Ask price. Consequently, an expansion in the bid/ask spread could amplify unrealized losses or diminish unrealized gains, despite having hedged positions.
Furthermore, if you are already near the stop out level, fluctuations in the exchange rate between the trading pair or currency of the asset and your base currency can influence your unrealized profit and loss, potentially leading to a Stop Out. Spread widening is a common occurrence in times such as market open/close, in periods of high volatility as well as during big economic/political news that impact the markets.
If you don’t have access to a forex margin calculator, here’s the formula for calculating the margin requirement:
Required Margin = (Trade Size x Contract Size x Open Price)/Leverage.
Example: If you buy 1 Lot of EUR/USD at USD1,1800 with a leverage of 100:1, the Required Margin will be: (1 x USD100,00 x USD1,1800) / 100 = USD1,180
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