A forex stop out (loss cut) is the automatic, forced closing of open positions the moment your account's margin level falls below the level a broker sets. Margin level is calculated as equity divided by required margin, multiplied by 100, and required margin is determined by leverage and trade size.
This article sets out the margin level formula and a worked example of how much floating loss triggers a stop out when trading 1 lot at 1:1000 leverage, then lists the margin call and stop out levels we could confirm on official pages for the offshore forex brokers listed on this site. Figures are based on each broker's official guidance, with the verification date noted; where we could not confirm a level, it is marked Check the official site.
Forex stop out calculation: how to work out the margin level
Stop out is judged not on account balance itself but on the ratio between equity, which reflects floating profit and loss, and required margin, the funds tied up to hold a position. Trading platforms (MT4/MT5) display this as margin level.
| Item | Formula | Meaning |
|---|---|---|
| Required margin | Trade value ÷ leverage | Funds tied up to hold the position. Trade value = lot size x units per lot x rate |
| Equity | Balance + floating profit/loss (+ bonus) | The funds remaining if you closed now. Falls as floating loss grows |
| Margin level | Equity ÷ required margin x 100 | Stop out (forced closing) triggers once this falls below the broker's level (for example 20%) |
※ Units per lot vary by broker and account type (100,000 units is standard; cent accounts use 1,000 units, for example). Whether bonus credit counts towards equity also depends on the broker's terms.
Worked example: 1:1000 leverage, 1 lot of USD/JPY
At USD/JPY 150.00, the trade value of 1 lot (100,000 units) is JPY 15,000,000. At 1:1000 leverage, required margin is JPY 15,000,000 ÷ 1,000 = JPY 15,000. With an account balance of JPY 100,000 and a broker stop out level of 20%, the position is closed once equity falls to JPY 15,000 x 20% = JPY 3,000. That means forced closing occurs once floating loss reaches JPY 100,000 minus JPY 3,000 = JPY 97,000. Since 1 pip on 1 lot equals JPY 1,000, a stop out is triggered by an adverse move of about 97 pips (JPY 0.97).
| Stop out level | Equity at stop out | Floating loss tolerated | Adverse move tolerated (USD/JPY) |
|---|---|---|---|
| 50% | JPY 7,500 | JPY 92,500 | about 92.5 pips |
| 20% | JPY 3,000 | JPY 97,000 | about 97 pips |
| 0% | JPY 0 | JPY 100,000 | about 100 pips |
※ A simplified calculation excluding spread, swap and commission. A lower level gives more room before forced closing, but leaves less money in the account.
Lowering leverage from 1:1000 to 1:100 raises required margin tenfold (to JPY 150,000), but profit and loss per pip (JPY 1,000 on 1 lot) does not change. With the same balance and lot size, lowering leverage actually brings the margin level to stop out sooner in the calculation. It is trade size (lot size), not leverage, that determines the size of a loss.
A guide to margin level and managing to avoid stop out
There is no single right margin level, but most brokers set a margin call level (for example 50%) above the stop out level and issue a warning near it. The basic approach is to decide, before you get close to a margin call, whether to reduce trade size or place a stop-loss order.
- Calculate the margin level from required margin and account balance before opening a position
- Know your profit and loss per pip (about JPY 1,000 for 1 lot, about JPY 100 for 0.1 lot) and check in advance how much balance a given adverse move would take
- With multiple positions, required margin and floating profit/loss are combined (how hedged positions are treated differs by broker)
- Spreads widen around weekends and economic releases, which can cause a temporary sharp drop in margin level
- Repeatedly depositing more funds just to avoid stop out is a classic way losses grow larger
Stop out is a forced closing designed to protect the funds in an account, while negative balance protection (zero cut) is a mechanism under which the broker covers a negative balance that occurs when stop out cannot keep up with a sudden move. Even with negative balance protection, you can still lose the funds you deposited. Conditions and exceptions differ by broker's terms.
Margin call and stop out levels by offshore forex broker (officially confirmed)
These are the margin call and stop out levels we could confirm on official sites and help centres for the offshore forex brokers listed on this site. Where levels differ by account type, the account name is noted alongside. Where we could not confirm a level, it is marked Check the official site; we do not publish estimated figures.
| Broker | Margin call | Stop out (loss cut) | Source / notes |
|---|---|---|---|
| Exness | 60% (Standard Cent, Standard) / 30% (Pro, Raw Spread, Zero) | 0% (all account types) | Official Help Center (confirmed 15 September 2026). Registration via the Kenya or Jordan entity is 20%. Stocks can be raised to 100% |
| HFM | 50% (KATANA 20%) | 20% (KATANA 0%) | This site's broker page (confirmed on the official account-type page) |
| XMTrading | Check the official site | 20% (Standard, Micro) | This site's broker page (confirmed on the official account-type page) |
| Monaxa | 50% (labelled loss cut on the official page) | 20% | Official account-types page (confirmed 2 September 2026) |
| Vantage Trading | 30% (Premium) / check the official site for other accounts | 0% (Premium) / check the official site for other accounts | Official Premium account page (confirmed 15 September 2026) |
| XS | Check the official site | Check the official site | Varies by account type and applicable terms; check the official site and account screen |
| Axi | Check the official site | Check the official site | No single published level found on the official Help Center; check the account screen |
| DecodeFX | Check the official site | Check the official site | Confirmed on the official account-type page |
| INFINOX | Check the official site | Check the official site | Confirmed on the official account-type page |
※ Levels can be changed at the broker's discretion and may differ by account type, instrument, entity and market conditions. Always check the terms that apply to your own account (in the trading platform's account information and the terms) before trading.
Exness and Vantage Trading's Premium account, both with a 0% stop out, are designed so positions are not forced closed until the margin level reaches 0% (equity of zero). This lets you hold a floating loss for longer, but leaves almost no funds in the account at stop out, making it more important to place your own stop-loss orders. HFM, XMTrading and Monaxa, with a 20% stop out, close positions while an amount equal to 20% of required margin remains, leaving that much in the account.
Forex leverage comparison: brokers offering 1:2000 and unlimited leverage →
Choosing a broker or account by stop out level
Who a low stop out level suits
For traders who manage their own margin level, always place a stop-loss order, and do not want a temporary adverse move around a release to trigger closing, a 0% account gives more room. But because closing happens only once the balance has fallen close to zero, you cannot leave money management to the broker.
Who a higher stop out level suits
For traders who find it reassuring to be forced out before a floating loss runs on, or who want to try several trades with a small amount of money, a level of 20% to 50% acts as a brake. Check the level at which a margin call warning appears before opening an account.
Many brokers step maximum leverage down as an account's equity or open position size grows (dynamic leverage). Lower leverage raises required margin and lowers the margin level, so if you trade with larger funds or larger lots, check these limiting conditions as well.
Frequently asked questions
Q. How is a forex stop out calculated?
A. It is triggered once margin level (equity ÷ required margin x 100) falls below the broker's stop out level. Required margin is trade value ÷ leverage, and equity is account balance + floating profit/loss. For example, at 1:1000 leverage, required margin for 1 lot of USD/JPY (150 yen) is JPY 15,000; with a balance of JPY 100,000 and a 20% stop out level, a stop out occurs once floating loss reaches JPY 97,000 (about 97 pips).
Q. What margin level percentage is safe?
A. There is no single benchmark. The basic approach is to calculate in advance how much balance a given adverse move would take, and to keep trade size with enough room so you stay above the broker's margin call level (for example 50%). Also allow for a temporary sharp drop in margin level from wider spreads during sudden moves.
Q. Which listed brokers have a 0% stop out?
A. Among the brokers listed on this site, Exness has a 0% stop out on all account types (official Help Center, confirmed 15 September 2026; 20% via some entities), and Vantage Trading's Premium account has a 30% margin call and 0% stop out (official page, same date). A 0% level means positions are not closed until margin level reaches 0%, so almost no funds remain in the account at stop out.
Q. Does lowering leverage make a stop out less likely?
A. Not with the same lot size. Lowering leverage raises required margin, which actually brings the margin level to the stop out threshold sooner in the calculation. Profit and loss per pip is set by lot size, so increasing the margin before a stop out means reducing trade size or adding to your balance.
Q. Does negative balance protection mean I do not need to worry about stop out?
A. No. Negative balance protection covers a negative balance that occurs when stop out cannot keep up with a sudden move; it does not prevent you from losing the funds you deposited. It is a separate mechanism from stop out, and conditions and exceptions differ by broker's terms.
Sources and conditions
- Exness Help Center: Margin Call and Stop Out Levels by Account Type →
- Exness Help Center: 0% Stop Out / Stop Out Protection →
- Vantage Trading Official: Premium Account →
- Monaxa Official: Account Types →
- HFM Account Types and Trading Conditions (this site) →
- XMTrading Account Types and Trading Conditions (this site) →
- Leverage and Stop Out Basics (beginner's guide) →
- Forex Leverage Comparison (column) →
FX Textbook is an independent information site, not a broker or provider of personal investment advice. Forex and CFDs involve risk. You may lose some or all of your invested capital. No trading result is guaranteed.
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