Q 1: can an unrealized loss(ongoing) result in a stop out ?
(or is it only after the realisation)
*stop out = 50 % in this example
++++++++++++++++++++++++++++++++++++++++++++
Q2: can an unrealized loss > equity ?
&
can unrealized loss > Margin ?
&
can unrealized loss > Free Margin ?
Thx.
*PS: an objective ‘yes’ or ‘no’ would suffice 
In forex your account is marked-to-market. That means there is no such thing as an “unrealized” loss or gain. They are realized as soon as price moves. Thus, if you’re in a position and the market goes against you…
Yes, you can be stopped out.
Yes, it reduces your account equity.
Yes, it reduces your free margin.
<That means there is no such thing as an “unrealized” loss or gain.>
some brokers(at least the one I use) have the “unrealized” jargon hardcoded into their systems.
but the response is sufficient and we can put a close on this one.
Thanks !
If your broker uses the term ‘unrealized loss’ he is likely referring to current trading losses which are still ongoing, so the unrealized loss could either increase or decrease depending how your trade performs before you close it.
Once you have closed the trade, any loss is 'realized’
Hope that helps
thats was my initial question actually eddieb
my unrealized loss (Paper loss) was increasing - trade was not closed at all.
As I understand this Paper loss is good enough to trigger the stop out ( provided it eats into the margin by the % , the broker has specified)
Infact its the paper loss only that will trigger the stop out.
Well yes, unrealized loss can result in a stop out. As you said if stop loss is 50% of used margin. It means that the position will get closed when your equity falls to 50% of the used margin.
Unrealized loss is the loss that has been occurred from the open position, which is basically reflected in the Equity but not in balance.
It totally depends on the leverage you have opted for.
For example, leverage in your account is 500x and balance is $1000.
Now let’s say you placed a trade of 1 lot for EURUSD, Margin used = $220
The position will get squared off when your equity falls to $110
The unrealized loss will be -$890
Used margin = $220
Free margin = - $110
P.S. Unrealized loss can be greater than margin as free margin.