The Stop Out level is the margin level at which open positions are automatically closed by the Metatrader 4 due to a lack of free margin.
The Stop Out level on our MT4 platform is set to 100%.
The Margin Call level is the minimum margin required to open a new position.
When this level is reached a notification appears on the screen to warn the Trader that the margin level is getting near the Stop Out level.
The Margin Call level on our platform is 120%.
When your margin level is between 120% and 100% you can only close your open positions and you cannot open new positions.
The margin level is the last value on the right on the “Trade” tab.
The percentage value is the result of the following formula: (Equity – Margin) / Margin * 100
Both Margin Call and Stop Out may sound like a sort of constraint or limitation. When the Stop Out is triggered, for example, one or more positions are automatically closed.
However both Margin Call and Stop Out are essential tools helping the Trader to avoid excessive losses: they prevent the account going into negative equity territory.
Having set these two parameters at higher levels compared to most brokers proves that Key to Markets is dedicated to protect the clients and to provide the safest possible trading environment.