Question: All my Forex orders were closed by Stop-Out on MT4 & MT5. Why did this happen?
Your order will be Stop-Out, when the margin level (Equity/Used Margin) of your trading account goes below 20%.
This 20% of the margin level is set by FBS, and the Stop-Out level varies for each broker.
This will trigger a stop-out and your positions will start closing starting from the most unprofitable.
This Stop-Out is also referred as Liquidation, as it will automatically close all existing open positions and liquidate them all.
And once this triggers in your trading account, there is nothing you can do but all your positions will be closed in a moment.
Stop out triggers to avoid further losses in your trading account, and in case of FBS, the broker assures that you will not lose more than you deposit.
Meaning that in case there is a minus balance in your account after Stop-Loss, then FBS will adjust the account balance to Zero in the system.
Please note that even if you have positions hedged, or enough margins at a normal time, high volatility in some News time cause a widened spread and huge loss in a few second and also stop-out in your trading account as a result.
In case you believe your orders were closed with errors or some features are not working in your trading accounts, please contact FBS support team.
Stop out and NBP (Negative Balance Protection) supports traders
‘Stop out’ (Margin Call) percentage is set by online Forex & CFD brokers to protect traders from making further losses.
‘NBP’ (Negative Balance Protection) is supported by online Forex & CFD brokers, to protect traders from exceeded losses.
With these 2 conditions, you will not lose more than the total account balance.
FBS supports both of the features, but some online Forex & CFD brokers do not support these. Thus, you are always recommended to check the service conditions before start investing.