MARGIN CALL & STOP OUT Margin Call (MC) and Stop Out (SO) ind | Daniel Education

MARGIN CALL & STOP OUT

Margin Call (MC) and Stop Out (SO) indicates the limit on the amount of equity that is determined to experience a loss or a floang loss correction.

Balance: The amount of funds in the account.
Equity: Balance + Profit / Loss
Profit floating: Open a profitable posion.
Loss floating: Open a posion that has a loss.

MC and SO are determined from the Margin Level.
Margin Level: (Equity / Margin total) x 100%

MC: 100%, meaning if Margin Level: 100%, then it will be exposed to MC. In this case, the MC will be affected when Equity: Total Margin.

SO: 30%, meaning that if Margin Level: 30%, then SO will be affected, and trading will be stopped. In this case, it will be SO when Equity: 30% of the total Margin.