What happens during a margin call and how to avoid it?

1. Your account Margin Level (Equity / Used Margin × 100) falls to the broker’s Margin Call Level (often 100% or 80%).

2. Broker sends an alert (email, platform notification) – add funds now.

3. If you ignore it and equity keeps dropping to the Stop Out Level (usually 50% or 30%), the broker automatically closes your losing positions (starting with the biggest losers) until your margin level is safe again.

4. You lose money. In extreme cases, you can lose more than your deposit (though many brokers offer negative balance protection).

- Use low leverage (start with 1:10 or 1:50 max as a beginner).

- Never risk more than 1-2% of your account on a single trade.

- Always set stop-losses on every trade.

- Keep enough free margin aim for margin level above 300-500%

- Monitor your account regularly, especially during high-impact news.

- Size your positions correctly: Use a position size calculator.

- Don’t overtrade or revenge trade.

Golden Rule: If your margin level is falling, close or reduce losing trades yourself, don’t wait for the broker to do it.

Trade small, stay disciplined, and margin calls will rarely (if ever) touch your account.

I heard Exness has a stop out protection feature please how does this work?

yeah Exness offers 0% Stop Out on most accounts, plus their Stop Out Protection feature.

It kicks in when your margin level drops near zero, instead of immediately closing positions, it delays the stop out (sometimes avoids it entirely) by giving you extra time, often via temporary virtual equity. This helps during spread widening or quick moves.