Question: What is the difference between Margin Call & Stop Out?
A Margin call is an instruction/warning from your Broker that the Equity you have in your account is running low and may not be enough to continue to support your open positions.
To prevent a margin call turning into a Stop Out, clients can increase their Margin by depositing more funds into their account to support their position(s) and/or can reduce the exposure they have to the market by closing their positions(s).
XM has set the Stop Out % to 20% for all account types.
With the Stop Out, all trading positions will be liquidated(closed) forcefully at the current available market prices.
In case the account balance becomes negative after Stop Out, XM will fix the balance to zero automatically.