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How to avoid a Margin Stop Out?

 

When trading leveraged products, it is important to regularly monitor your account's Margin Level and available equity.

A Margin Stop Out may occur when your account equity falls to the applicable Stop Out threshold.

To help reduce the risk of a Margin Stop Out, you can monitor:

  • your account equity;
  • Used Margin;
  • Free Margin;
  • Margin Level;
  • the size and number of your open positions; and
  • market conditions that may increase volatility or widen spreads.

If your Margin Level is falling, possible actions may include:

  • reducing or closing one or more open positions to lower your margin requirement; or
  • adding funds to your trading account.

Adding additional funds increases the amount of capital exposed to trading risk and does not guarantee that your positions will recover.

Margin Stop Outs are processed automatically once the applicable conditions are met. Market movements may also occur very quickly, so you should not rely on receiving a warning before positions are closed.

You can monitor your Margin Level directly through your trading platform.