Hey guys, I’m fairly new to Forex… but I have some spare cash and I want to play around. I’ve opened an account with liteforex.org. I have it setup to 1:100 leverage. It says that the Margin Call Level is 50% and Stop-Out Level is 20%. Under their FAQ it says:
The company has a right to close customer’s positions without notifying him, in case equity is less than 20% of the required margin (for opened positions). If several positions are opened, the company can close one or several of them, starting from the one, generating the largest loss. The trade account condition is controlled by the server, which closes all positions automatically, if margin level reaches 10% (or less) for “Lite” accounts. This situation is called “Stop Out”. It is performed by the current market price. For real accounts the values are 50% and 20%.
First, whats the difference between Margin Call & Stop-Out level. Lets say I deposit $3000. How low will my margin need to go in order for them to close my position?
P.S. Also if you guys have any feed back on that broker it would be appriciated :).