Woodside Capital, Inc.
Project Finance, Stocks & Options, Commodity, Forex, Futures, Binary Options

What is WCI margin stop out level?

WCI margin stop out level is100% this means that if your Free Margin falls below 50% then your positions will be automatically closed. MetaTrader 4 will automatically close in order of the largest loosing position to the smallest.

The margin stop out level is calculated using the following formula.

Margin level = equity / used margin x 100%

= margin level %

Worked example

The margin on a $10,000 USD (equity) trading account with 1 standard lot open position on USD/JPY and 100 times leverage would be calculated as follows:

= 10,000 / 1,000 x 100%

= 1000% margin level

If the position moves against you and your equity fell to $5,000 the calculation would be:

= 5,000 / 1,000 x 100%

= 500% margin level

If the position moved against you even further and the equity fell to $499 the position would be stopped out as the margin level would have  fallen below 100%.

= 499 / 1,000 x 100%

= 49.9% margin level

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