Forex glossary
Margin call
Documentation context: In MT5 the threshold may be a percentage or an amount in deposit currency; notification and timing depend on account rules.
A margin shortfall or related warning defined by the account's rules. Thresholds, notification requirements and timing vary; a warning does not guarantee an opportunity to act before liquidation.
Illustrative example
How does it work in practice?
A hypothetical account has a 120% warning threshold, equity 1,100 USD and margin 1,000 USD. Margin level is 110%, below the threshold; this establishes neither a reaction window nor liquidation order.
Warning, stop-out and stop loss
Illustrative model only: initial and used margin both remain 1,000 USD; warning below 120%, close-out below 50%.
On a narrow screen, the table can be scrolled horizontally.
| Term | What it describes | Shared example |
|---|---|---|
| Margin call | An account-margin state or warning defined by its collateral rules. | Equity of 1,100 USD gives 110%: below the model warning threshold. |
| Stop out | Closure of one or more positions following a collateral shortfall. | Equity of 490 USD gives 49%: below the assumed close-out threshold. |
| Stop loss | A price condition for a particular position, separate from these thresholds. | Long entry at 10 USD per unit, stop at 9 USD; an ordinary stop does not guarantee a 9 USD fill. |
Takeaway: The three concepts have different triggers. These example thresholds are not a provider offer, and a warning guarantees no reaction window.
Change an assumption, see the result
What changes if…?
Reduce open P/L and compare margin level with a hypothetical stop-out threshold. Use the comparison table for a separate margin-call threshold: this model does not simulate notifications.
Model: equity = balance + open P/L; free margin = equity − margin. No credit, fees or other blocks. The stop-out threshold is hypothetical; the actual formula and action depend on the provider’s terms.
Check your understanding
Separate a model warning threshold from close-out and from any promise of reaction time.
Show the answer and explanation
The warning condition, but not the stop-out condition.
Margin level is 110%: below 120% but above 50%. The model promises neither a notification method nor time to react.
Read the account and its margin thresholds
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Related terms
Sources and documentation
- MQL5 Reference: Account Properties
Account properties distinguish equity and margin values and separate margin-call and stop-out thresholds expressed in percentages or deposit currency.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.