What is the stop out level in FP Markets?

When engaging in cryptocurrency trading on platforms such as BTCC, understanding margin requirements is crucial. If the value of an equity position declines significantly, specifically by 5,200 USD in this scenario, the trader's account may be subject to a margin call.

A margin call is a notification issued by the exchange or brokerage to the account holder, indicating that the current equity level has fallen below the minimum maintenance margin requirement. In this case, the decline represents a 100% margin usage, signaling a potential risk of liquidation.

With spot trading, traders can buy and sell cryptocurrencies at the current market price, while futures trading allows for speculation on future prices. The wallet service, on the other hand, provides a secure and convenient way to store and manage digital assets.

To avoid further losses and potentially hitting the stop-out level, the account holder must take immediate action. This involves depositing additional funds into the account to bring the equity level back above the required margin threshold.

The stop-out level is a predetermined percentage below the used margin, which, for FP Markets, is set at 50%. If the account's equity continues to decline and reaches this level without additional funds being deposited, the broker may take action to protect its interests.