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# Understanding Margin Call and Stop Out Levels at QuickTrade
When trading on platforms like MetaTrader 5 (MT5) through QuickTrade, it is essential to understand key concepts such as Margin Calls and Stop Out Levels to manage your account efficiently. These concepts ensure that traders maintain sufficient capital in their accounts to support open positions while minimizing the risk of automatic liquidation.
#### What is a Margin Call?
A **Margin Call** occurs when the value of the securities or positions in your trading account falls below the required margin level, known as the **maintenance margin**. The maintenance margin is the minimum amount of equity you must maintain in your account to keep your trades open.
If the equity in your account falls below this threshold, QuickTrade will issue a margin call. This means you must deposit additional funds or securities to bring your account back up to the required level. Failing to meet a margin call can lead to the liquidation of some or all of your positions to protect against further losses.
#### Stop Out Level Explained
The **Stop Out Level** is another crucial safety mechanism for protecting your account from excessive losses. At QuickTrade, the Stop Out Level is set at **80%** of your margin level. This means that if your **Margin Level** (the ratio of your equity to the used margin) drops to or below 80%, QuickTrade will automatically start closing your open positions to prevent your account balance from going negative.
This liquidation process occurs without prior notice, as it is a safeguard against extreme market conditions that could wipe out your account balance. Once the margin level reaches the stop out threshold, QuickTrade prioritizes closing the least profitable trades until the margin level stabilizes.
#### How to Avoid Stop Out on MT5 at QuickTrade
To avoid reaching a Stop Out Level or triggering a Margin Call, it's essential to implement sound risk management practices. Here are some tips to keep in mind while trading on MT5 with QuickTrade:
1. **Limit the Number of Open Positions**
Avoid opening too many positions simultaneously, as each open trade consumes a portion of your available equity. The more positions you open, the less equity remains as free margin. This increases the likelihood of your margin level dropping to critical levels, leading to a margin call or stop out.
2. **Monitor Your Free Margin**
Always keep an eye on your **Free Margin**—the amount of capital available to open new positions or absorb losses. Monitoring this can help you anticipate potential margin issues before they escalate.
3. **Use Stop-Loss Orders**
Implementing **stop-loss** orders on your trades is an effective way to limit losses. A well-placed stop-loss ensures that you exit a trade automatically once it reaches a certain loss level, preventing your margin from eroding too quickly.
4. **Avoid Over-Leveraging**
While leverage allows you to control larger positions with a smaller initial investment, it also amplifies your risk. Using high levels of leverage can quickly deplete your margin if the market moves against your position. Choose your leverage ratio wisely and ensure it aligns with your risk tolerance.
By following these strategies, you can minimize the chances of hitting the margin call or stop out levels, preserving your trading capital and maintaining control over your positions.
For more information about margin requirements and trading guidelines, visit [www.quicktrade.world](https://www.quicktrade.world).