What is a margin call and stop out?

January 25, 2014

What is the Vantage FX Margin Call level?

A margin call occurs when there are not enough funds in your trading account to open trades. This is also when your floating losses are greater than the minimum margin required. Vantage FX’s margin call level is at 80%.

A margin call notification email will be sent to you when your account equity falls below 80% of the required margin. Upon receiving this notification, it is ideal to fund your account immediately if you wish to avoid being stopped out. The best option is with Instant Credit Card funding as it is quick and also available 24 hours a day.

What is the stop out level?

The stop out level at Vantage FX is 50%. This means that when your account equity reaches the 50% mark, all active positions will be closed automatically by Vantage FX as your margin levels are too low to sustain the open position(s).

The margin call is considered the first warning whereas the stop out is the automated action taken to minimise the chance of your account going into negative balance. It is your responsibility to ensure that your account meets the margin level requirements and in the event this is not met, Vantage FX reserves the right to liquidate (stop out) one or all of your positions in accordance with and outlined in our PDS .

 

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