Understanding margin calls and stop out levels is crucial for managing your trading risk. These mechanisms protect the traders from significant losses.
What is a Margin Call?
A margin call happens when your account’s equity (the total value of your funds plus or minus open trades) gets too low to maintain your open positions. It is a warning that some positions are at risk due to market movements.
Margin calls give you time to add funds or close trades before automatic action occurs.
You may receive a notification from Tradin, but it is ultimately your responsibility to monitor your margin.
What is a Stop Out Level?
The stop out level is the point at which Tradin automatically closes your open positions to protect your account from going negative.
Positions are closed starting with the most unprofitable trades.
This ensures you do not lose more than your deposited funds, thanks to Tradin’s negative balance protection.
How Leverage Affects Stop Out
Leverage affects margin requirements and the risk of reaching a stop out level. It lets you control larger positions with a smaller amount of money. However:
Higher leverage increases sensitivity to market changes. Even small price movements can reduce your equity quickly and trigger a stop out.
Lower leverage requires more margin for trades but decreases sensitivity to price fluctuations, reducing the risk of triggering a stop out.
Stop Out Levels by Account Type
| Account Type | Stop Out Level | Key Notes |
| Standard Account | 30% | Balanced for general traders |
| Swap-Free Account | 20% | Designed for Islamic-compliant trading |
| Raw Account | 30% | Suitable for traders seeking tight spreads |
IMPORTANT:
Always monitor your account balance and open trades to avoid automatic closures. Using Tradin’s MT5 platform, you can see real-time equity, margin usage, and margin call alerts for better risk management.
