Exness introduces mid-price stop out

On Exness’s platforms, the stop out (a liquidation of all open positions) is triggered when the margin level reaches zero.

Thanks to the mid-price stop out, Exness’s trading system will consider both a spread and lot volume to rise the difficulty of stop-out in general.

Go to EXNESS Official Website

What is Exness’s Mid-Price Stop out?

Exness has updated the trading conditions with the addition of a new feature “Mid-Price Stop out” that can significantly reduce stop-out (forced settlement).

Mid-price stop outs reduce the likelihood of stop-loss in the event of unrealized losses.

The mechanism of mid-price stop-out is referred to as the mid-price stop-out algorithm.

Open EXNESS’s Trading Account

Difference between standard stop-out and mid-price stop-out

Normally, overseas Forex companies (overseas Forex brokers, overseas Forex companies) will make a stop-out in the following cases.

Margin Effective Margin – Unrealized Loss = $ 0 or Less

In Exness, the stop-out level is 0% of the margin maintenance rate. Therefore, even in the above formula, it is displayed as “less than $ 0”.

The Exness mid-price stop out will take into account a half spread discount as shown below.

Margin Effective – Unrealized Loss + Half Spread Discount = $ 0 or Less

Go to EXNESS Official Website

Exness’s Mid-price stopout calculation example

In order to explain the mid-price stop out of overseas Forex broker Exness, let’s assume the following transaction situation.

In the above trading situation, the initial account balance is $ 100-Unrealized loss of Order A is $ 4,000-Unrealized loss of Order B is $ 6,000 = $ 0. Before the introduction of the mid-price stop-out, the loss was cut.

Open EXNESS’s Forex Account

Benefits and effects of mid-price stop-out

In the mid-price stop-out, which is a new loss cut rule of Forex broker Exness, the calculation formula for executing loss cut is as follows.

Initial Account Balance $ 100-Unrealized Loss on Order A $ 40 + Discount on Order A Spread $ 5-Unrealized Loss on Order B $ 60 + Discount on Order B Spread $ 7.5 = $ 12.5

Half the spread discount (spread and trading volume) is taken into account and not stop-out.

This can be expected to reduce overall stop-outs.

Exness’s new mid-price stop-out algorithm further enhances protection against market volatility and widening spreads by deciding orders based on mid-price rather than buy / sell.