Margin call and stop out

Margin level is your equity divided by used margin, expressed as a percentage. It is the number that decides whether your positions stay open.

Margin call

A margin call is an alert that your free margin has fallen low. It is a warning, not an automatic action: your positions remain open, but you have little room left before they are closed for you. At that point you can deposit more funds, reduce position size, or close positions yourself.

Stop out

Stop out is the automatic closure of positions when your margin level reaches the stop out level. At Caveo FX the stop out level is 20%.

When it triggers, positions are closed by the platform to prevent your account moving further into loss. This is not discretionary and it is not reversible — once a position is closed at stop out, it stays closed.

Avoiding it

• Use a stop-loss on every position, so the exit is a decision you made rather than one made for you
• Keep free margin in reserve rather than committing all of it
• Remember that withdrawing or transferring funds out of an account with open positions lowers your margin level
• Size positions with the contract calculator instead of by feel

"Not Enough Money"

This error means your free margin is insufficient for the position you are trying to open. Check your available equity and use the margin calculator to work out what the trade actually requires, then reduce the volume or deposit additional funds.