Monday, January 15, 2018

Stop Out level

What is Stop Out
A certain required margin level (in percentage) at which your trading positions will start to automatically close in order to prevent further account losses into the negative territory.
For example:
Your balance is $10,000.
You open a trading position with $1,000 margin.
If the loss on this position reaches $9,500, your account equity becomes:
$10,000 — $9,500 = $500
(50% of your used margin)
At that time, a Stop Out will be issued and your positions will start closing.( 
AvaTrade has Stop Out level as 50%)

No comments:

Post a Comment