Margin call and stop-out levels depend on the account type:
Account type | Margin Call | Stop Out |
---|---|---|
Standard (MT4 & MT5) | 80% | 20% |
ECN MT4 | 80% | 50% |
Pro ECN (MT4 & MT5) | 80% | 50% |
Find out more on how Margin Call and Stop out can affect your account and how you can calculate your account's Equity level in this article: What is stop out and margin call?
Please note that while hedged positions do not require margin, they can face Stop Out if account equity falls below zero. This can result from rollover costs, fluctuations in exchange rates, or increases in spreads.
In a hedged position, sell trades are closed by the ASK price, and the buy trades are closed by the BID price. Normally, the loss of one position will be offset by the gain of another.
However, when spreads increase, all positions can create losses and can cause a Stop Out as the equity in the account will decrease.
In such cases, the Stop Out will firstly occur on the positions that carry the biggest loss but once these positions are closed, they can unbalance the hedge which can cause all remaining positions to be also stopped out.