Margin is the part of your equity set aside to keep trades open. When equity falls too close to it, the platform warns you — and then starts closing trades.
Used margin, free margin and margin level
Used margin is locked for your open trades. Free margin is what is left for new trades. Margin level is equity divided by used margin, shown as a percentage.
Example: $1,000 equity and $200 used margin is a 500% margin level. If open trades lose $800, equity is $200 and the margin level drops to 100%.
What happens next
At the margin call level you get a warning and cannot open new trades. At the stop out level the platform closes your largest losing trade first, until the margin level recovers.
Check your levels
Margin call and stop out levels differ between account types. Check them on your account page before trading.
Apply the idea
Keep your margin level well above the margin call level. Using stop losses and smaller positions keeps used margin low and leaves room for normal price swings.
Key takeaway
A margin call is a warning; a stop out is the platform closing trades for you. Watch equity, not just balance.
