Margin call at 50% margin level, stop-out at 20% margin level. Positions are closed in order of largest loss first when stop-out is reached.
Direct answer
Margin level is the ratio (equity / used margin) × 100%. As losses eat into equity, that ratio drops. At 50% you receive a margin-call notification (positions stay open). At 20%, the platform begins force-closing positions automatically, starting with the largest loss, until the ratio rises above 20%.
Worked stop-out scenario
| Stage | Equity | Used margin | Margin level | Status |
|---|---|---|---|---|
| Position open | $1,000 | $200 | 500% | Healthy |
| Drawdown 1 | $300 | $200 | 150% | Approaching call |
| Drawdown 2 | $100 | $200 | 50% | Margin call |
| Drawdown 3 | $40 | $200 | 20% | Stop-out begins |
How to avoid stop-out
- Use stop-loss orders so the platform doesn’t have to triage at 20%.
- Size positions so a single losing trade can’t drag margin level below ~150%.
- Monitor margin level in MT4/MT5’s “Trade” tab during open positions.
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FAQ
What is XM’s stop-out level?
Margin call at 50% margin level, stop-out at 20% margin level. Positions are closed in order of largest loss first when stop-out is reached.
Does negative balance protection apply at XM?
Yes, XM Group offers negative balance protection so retail clients cannot owe more than the account balance after stop-out, even on extreme gaps.
Can I change the stop-out level?
No. 50/20 is the broker-set policy applicable across retail accounts.
Related XM guides
- What is XM’s maximum leverage?
- How is margin per lot calculated at XM?
- Does XM allow hedging?
- Can you actually trade with XM?
- Is XM’s slippage high?