I'm curious since I've never known a broker to stop out a trade at anything less than 50-80% margin level but today I got stopped out on a trade at 115% which seems...unreasonably cautious... to put it politely.
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DislikedI'm curious since I've never known a broker to stop out a trade at anything less than 50-80% margin level but today I got stopped out on a trade at 115% which seems...unreasonably cautious... to put it politely.Ignored
DislikedThat makes me think. I suppose a broker can advertise any leverage they want, but what actually matters is the stop out level. They could have leverage at say 100:1, but if the stop out level is 200 percent margin, then effectively leverage is only 50:1.Ignored
Disliked{quote} which broker? what instrument. some has raised capital req due to volatility.Ignored
DislikedIt seems to me, the whole purpose of measuring a level in %age terms is so that you (trader) intuitively understands at what point a margin call will arrive. 100% is the line in the sand. MOST brokers I've traded with don't stop out until 80 or 50. To stop out at 101 or 115 or 200 is nonsensical, borderline if not actually criminal.Ignored
DislikedThat makes me think. I suppose a broker can advertise any leverage they want, but what actually matters is the stop out level. They could have leverage at say 100:1, but if the stop out level is 200 percent margin, then effectively leverage is only 50:1.Ignored
Disliked{quote} it is an assumption on your part that all brokers operate equally and have the same parameters. Global Prime for one, has a stop out at 100% margin. ever since the snb crisis, some have been operating with CHF pairs with 200% margin req.Ignored