Reference · Market Mechanics
Margin Call vs Stop Out: What the Thresholds Mean
Understand warning and close-out states using an illustrative margin-level timeline, with checks for thresholds, execution risk and account rules.
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Published by FxTrusts, a supplier of brokerage and prop firm technology. Prepared with AI-assisted research and drafting; reviewed against the cited public sources. Examples are illustrative. Product links describe our services.
Quick answer
A margin call identifies an account condition that requires action under the relevant margin policy. Stop out usually refers to automatic position close-out when a defined condition is reached. The thresholds, measurement units, notifications and liquidation process depend on the account and provider.
Separate the threshold from the resulting action
A warning level, a restriction on opening orders and a liquidation trigger are different controls. They may occur at different values and may use percentages or monetary amounts. A term such as margin call does not prove that a person will telephone the customer before action occurs. The platform and account terms should explain the trigger, available notifications and actions that can follow. Record those details when reviewing the workflow.
Read the account’s calculation mode
A common illustration uses equity divided by used margin, expressed as a percentage. Under that model, lower equity can push the ratio toward a threshold. But MQL5 account properties distinguish the stop-out mode and associated levels; a reviewer should not assume every account uses the same units. Conversion rates, costs and changing margin requirements can also move the account toward a trigger without a new trade being opened.
Treat close-out as a process with execution risk
Crossing a liquidation threshold does not guarantee a particular closing price or a perfectly preserved balance. Available liquidity, gaps, trading sessions and the sequence of position closures affect the outcome. Closing one position may release margin and change the ratio for the remaining portfolio. The exact close-out algorithm is provider-specific. Do not substitute a simplified educational diagram for the contractual process or imply that an initial threshold caps all losses.
Keep customer explanations tied to evidence
A useful support record contains the account values immediately before the event, applicable thresholds, open positions, relevant prices and resulting executions. Compare timestamps using the platform’s documented clock. A balance captured after liquidation may not reproduce the trigger state. Where records disagree, preserve the source data and escalate for review rather than inferring that a threshold was ignored from one final screenshot.
An illustrative warning and close-out timeline
Assume percentage mode, 1,000 USD used margin, a warning at or below 120%, and close-out eligibility at or below 80%. These invented thresholds explain the distinction only. Actual policies may use different values, equality rules or units, and actual executions can change both equity and margin.
| Equity | Margin level | State under the example policy |
|---|---|---|
| 1,500 USD | 150% | Neither threshold reached |
| 1,200 USD | 120% | Warning condition reached |
| 900 USD | 90% | Below warning; close-out condition not yet reached |
| 800 USD | 80% | Close-out condition reached; execution process still matters |
Implementation checklist
- Confirm whether thresholds use percentages or monetary amounts.
- Record equality rules, notification behavior and closing sequence.
- Reconstruct the trigger state using contemporaneous account and price data.
- Explain that a close-out trigger does not guarantee an execution price.
Sources
These documents support the reference. Check the original publication for current requirements and the limits of its scope.
- MQL5 account propertieswww.mql5.com
- MetaTrader 5 executing trades and account valueswww.metatrader5.com
- MetaTrader 5 margin calculationwww.metatrader5.com
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