Lesson 5 of 104:054 Sources
Margin call and stop out — how it happens and how to avoid it
Recorded. Publishing soon
Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.
In MT5, margin level = equity ÷ margin × 100. Your broker sets a margin call level (warning) and a stop-out level where positions are closed automatically. In the EU, ESMA requires retail CFD positions to be closed at 50% of required margin.
- Example: $1,000 account, $500 margin, $5/pip. −60 pips → 140%; −100 → 100%; −150 → 50% stop out = −75% of the account.
- Negative balance protection (ESMA) caps losses at your account funds but doesn't refund them.
- Avoid it with risk-based sizing, a stop on every trade, and watching total exposure.
Quick check
Three questions. Pick an answer to see why.
1.How does MT5 define margin level?
2.Equity $700, margin $500. What is the margin level?
3.What is the best response to a margin call on a losing trade?
Sources
Every fact in this lesson is backed by the sources below.
- 1.MetaQuotes — MT5 Help: Executing Trades (Trade tab terms)MT5 definitions: balance, equity, margin, free margin; margin level = Equity/Margin*100
- 2.MQL5 Reference — Account Properties (Margin Call / Stop Out levels)Margin call and stop-out levels are account settings expressed in % or deposit currency
- 3.ESMA (2018) — ESMA agrees to prohibit binary options and restrict CFDsEU retail CFD margin close-out at 50% of minimum required margin; negative balance protection
- 4.MetaQuotes — MT5 Help: Margin Calculation (Forex)Margin is charged to secure open positions
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