Stop Out - Forced closure of client's positions at current market prices. This happens when the ratio of funds to margin becomes equal to the value of the Stop Out level set by the Company.

Example 1.

Balance 2 250 USD; funds (equity) 2 282,71 USD; margin 309,81 USD. The level is calculated based on the equity and margin values and is calculated as a percentage.

Level = (funds / margin) * 100 % = (2 282,71 USD /309,81 USD)*100 = 736,81 %

Margin is the amount on the account, which is blocked when any position (trade) is opened. It acts as a kind of collateral for the transaction(s).

It is calculated according to the following formula:

Margin = (opening volume of the transaction * 100 000 base currency * Opening price) / leverage 

Note: The opening price is used in the calculations if the deposit currency does not coincide with the base currency in the currency pair.

Example 2.

Deposit currency USD; leverage 1:100; trade volume 0.5 lots; GBP/USD: GBP/USD currency rate (bid 1.38700/ask 1.38730).

Buy (ask):

Margin = (0.5 * 100,000 * 1.38730) / 100 = 693.65 USD

Sell (bid):

Margin = (0.5 * 100,000 * 1.38700) / 100 = 693.5 USD

Example 3.

Deposit currency USD; leverage 1:100; volume 0.3 lots; USD/CHF: USD/CHF rate (bid 0.93880/ask 0.93890). The opening price will not be used in the calculations, as the deposit currency coincides with the base currency of the currency pair.

Buy (buy, ask):

Margin = 0.3 * 100 000 / 100 = 300 USD

Sell, bid:

Margin = 0.3 * 100 000 / 100 = 300 USD