Risk warning: Trading CFDs and FX carries significant risk and is not suitable for everyone. You have no ownership of the underlying asset. Pepperstone Financial Services (DIFC) Limited is regulated by the DFSA. Arranging for Pepperstone Group Limited, AFSL 414530, the product issuer.

When does a margin call and stop out occur?

For the MT4/5 platforms a margin call occurs when equity on the account falls below 90% of the margin required for maintaining your positions and an automatic stop out will occur when account equity falls below 50% of the margin required for the trades.

This percentage is constantly calculated and updated on your platform and is called 'margin level'. If your equity (balance plus/minus open profit/loss) falls below 50% of the margin required to maintain the open position(s) they will be automatically closed. This is calculated as follows:

Margin level (equity / margin) = < 90% (margin call warning)

Margin level (equity / margin) = < 50% (stop out)


On cTrader, the margin call settings can be adjusted to your preferred margin level but are set by default at 500%, 100% and 80%. Smart stop-outs occur when equity falls below 50% of the margin required for open trades on the account.

Margin level (equity / margin) = < 50% (cTrader stop out)


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