You can try to prevent stop-out risk by monitoring your margin level, maintaining sufficient free margin, and managing your exposure. These measures do not guarantee that automatic position closures will be avoided.
What should I monitor?
- Margin level: Check how close your account is to the 50.00% Margin Call and 20.00% Stop-Out levels.
- Free margin: Maintain sufficient free margin to accommodate market fluctuations.
- Open positions: Monitor manual, automated, and copied trades. Multiple positions can increase margin requirements quickly.
What actions can help reduce stop-out risk?
- Respond to a margin call: Review your account and take action when your margin level reaches 50.00%, before it falls to the Stop-Out threshold.
- Review position sizes: Consider reducing your exposure if your positions require too much margin relative to your equity.
- Review leverage: Consider your leverage alongside position size and available funds.
- Use Stop Loss orders: Consider Stop Loss orders to help manage potential trading losses.
Stop-out begins automatically when your margin level reaches or falls below 20.00%. Monitor your account before it reaches this threshold.
Risk Warning
Trading Contracts for Difference ("CFDs") and other leveraged financial derivatives involve a high degree of risk and may not be suitable for all investors. Leverage can magnify both gains and losses, and you may lose all of your invested capital. You should ensure that you fully understand the risks involved before trading.
The information provided on this website is for general information purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any financial instrument.