Margin Call & Stop-Out Policy

This article explains how margin calls and stop-out levels work on Capital Street FX trading accounts and how these mechanisms are used to manage trading risk and protect account equity.

Understanding Margin Call

A margin call is a warning notification issued when the account’s margin level falls below a predefined threshold. It indicates that the account is approaching a risk level where open positions may no longer be supported by available equity.

Margin calls do not close trades automatically but alert clients to take corrective action.

Stop-Out Level

The stop-out level is a critical margin threshold at which the trading platform automatically closes open positions to prevent further losses.

When the stop-out level is reached:

• Positions are closed automatically, starting with the most unprofitable trades

• The process continues until the margin level rises above the stop-out threshold or all positions are closed

How Margin Level Is Calculated

Margin level is calculated as:

• Equity divided by used margin, expressed as a percentage

Lower margin levels indicate higher risk of margin calls and stop-outs.

Client Actions During Margin Call

When a margin call occurs, clients may:

• Deposit additional funds

• Close open positions

• Reduce trade volume

These actions can help restore margin levels and prevent stop-out.

Important Notes

• Margin calls and stop-outs are triggered automatically by the platform.

• Capital Street FX is not responsible for losses resulting from automatic position closures.

• Market volatility can cause rapid changes in margin levels without warning.

This policy helps clients understand how margin calls and stop-out mechanisms operate to manage risk on leveraged trading accounts.