What is a Margin call?
A Margin Call is a warning notification that appears in MetaTrader 4 or MetaTrader 5 when the margin level in your account drops to 100% or lower.
In simple terms, it means that your available funds are at risk, and you might not have enough capital to keep your open positions running.
How is margin level calculated?
The Margin Level is a key indicator in MetaTrader and is calculated using this formula:
Margin Level = (Equity / Margin) * 100%
You can find this indicator in the “Trade” tab of the “Terminal” window in MetaTrader.
How to know if you’re in Margin Call?
When the Margin Level drops below 100%, you enter a Margin Call situation.
This means your current equity is no longer enough to properly cover your open trades.
What is a Stop-Out?
A Stop-Out happens when your losses become too large, and your account can no longer sustain the open positions.
At this point, the system will automatically close your trades to prevent your account from going into a negative balance.
For Instant and Market accounts, this occurs when your Margin Level drops to 50% or lower.
Margin call vs. Stop-out
🧾 Term | ⚠️ Margin Call | ❌ Stop-Out |
📉 When It Happens | When Margin Level ≤ 100% | When Margin Level ≤ 50% |
📢 What It Does | Sends a warning | Automatically closes positions |
🎯 Purpose | To prevent further risk | To protect your remaining balance |
Summary
Margin Call = a warning when your margin level drops to 100% or less
Stop-Out = forced position closure at 50% or less margin level
You can track your margin level in the “Trade” tab of MetaTrader
Maintaining a strong margin level helps you avoid automatic closures and protects your account