What is the stop-out level for your broker? | Forex Factory

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What is the stop-out level for your broker?

  • #1
  • First Post: Sep 15, 2019 10:39pm Sep 15, 2019 10:39pm
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.
  • #2
  • Sep 16, 2019 12:39am Sep 16, 2019 12:39am
That 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.
  • #3
  • Sep 16, 2019 6:59am Sep 16, 2019 6:59am
The Stop Out Level is similar to the Margin Call Leve,In forex trading, In forex exchanging, a Stop Out Level is the point at which your Margin Level tumbles to a particular rate (%) level in which one or the majority of your open positions are shut consequently by your broker.
  • #4
  • Sep 16, 2019 7:24am Sep 16, 2019 7:24am
Quoting clemmo17
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.
which broker? what instrument. some has raised capital req due to volatility.
  • #5
  • Sep 16, 2019 7:25am Sep 16, 2019 7:25am
Quoting BubaYaga
That 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.
wrong. effectively you only have 25.

if u had 200 leverage, and margin stop is 100. u would have 100 leverage. but u will not be able to fully utilize the 100. at best, 50, the remaining 50 is for capital req. and ur margin exposure will be at 100ish. putting you mere points away from a stop out.. not forgetting, the greater ur leverage, the greater the drop in margin % each point tt goes against you.

@ 100 leverage, -1% is on 200 leverage, -2%
  • #6
  • Sep 16, 2019 8:16am Sep 16, 2019 8:16am
Margin requirements are usually calculated in %, see this one for Exness = https://photoshar.in/exness-margin-requirements
  • #7
  • Sep 16, 2019 7:02pm Sep 16, 2019 7:02pm
Quoting Bicarus
{quote} which broker? what instrument. some has raised capital req due to volatility.
Tradeview. BTCUSD
  • #8
  • Edited 8:34pm Sep 16, 2019 7:05pm | Edited 8:34pm
It seems to me, the whole purpose of measuring a level in %age terms is so that you (trader) intuitively understand 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.
  • #9
  • Sep 16, 2019 8:32pm Sep 16, 2019 8:32pm
Quoting clemmo17
It 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.
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.
  • #10
  • Sep 16, 2019 8:55pm Sep 16, 2019 8:55pm
Quoting BubaYaga
That 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.
FX PIG give you the option of choosing 200:1 with 50 percent margin close out, or you can choose 400:1 with close out at 100 percent of margin.
it's same thing if you trade the same size (lots).
  • #11
  • Last Post: Sep 16, 2019 10:12pm Sep 16, 2019 10:12pm
Quoting Bicarus
{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.
Read my post again. My assumption is that all brokers are a bit different - each with different stop-out levels, and as BubaYaga says, some even give you a choice of leverage and stopout level. One thing we can agree on is that 100% is a number with special significance. And Tradeview, as far as I'm aware also stops out at 100%. There is a difference between margin requirement and margin level. Margin level is a ratio that shows the absolute distance from your margin requirement. So whatever your margin requirement, 200, 600, whatever, if you are on the right side of it, your level should be >100%. When TV stopped me out at 115% they basically said, "Fuck you, bitch, your money is our money." And I haven't heard a peep from them after they said they'd pass it up the chain, which means, "We don't give a rip - fuck off with your little account now." So I will. If a broker can't be entrusted with a small account they sure as hell can't be trusted with a large one.
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