Margin Call And Stop Out Level Are They The Same?

[Ese11]

This forum has been very helpful to me,especially when I am confused and need answers to questions boiling in my brain ,and I am very thankful to everyone.This time I am not quite clear on these two: Margin call and Stop Out level ,are they the same?

 

[Enivid]

No, they are different. Margin call is a warning, stop-out is an action. I have written about them in this article:
https://www.earnforex.com/guides/stop-out-level-vs-margin-call/

 

[Ese11]

Thank you Enivid

 

[radex78]

Yes both is different, margin call level maybe each broker has own rules how much percent margin left to withstand price movement, if use big lot size usually will quickly get margin call account which order automatically closed because free margin can't withstand price movement and will left few equity, still possible with left equity any trader open trade again use smallest lot size, but stop out account, as trader they can't do nothing because although use smallest lot size still not enough margin to open new transaction.

 

[jomina]

This forum has been very helpful to me,especially when I am confused and need answers to questions boiling in my brain ,and I am very thankful to everyone.This time I am not quite clear on these two: Margin call and Stop Out level ,are they the same?

I understand that margin call is a broker's warning to a trader that the level of equity in the account is running low relatively to the used margin. if you get margin call, you might need to deposit more money into your account or close some trade to prevent further losses.

Stop Loss: This is a pre-set price level at which your trade will automatically close to limit your losses. It's like a safety net that you set up in advance to protect your investment. If the market moves against you and hits your stop loss, your trade will close automatically to prevent further losses.