Question: What are FXPro's margin call and stop out levels? Is NBP supported?
What are FXPro’s Margin Call, Stop Out levels and the NBP policy?
- Margin Call and Stop Out Levels of FXPro
- NBP (Negative Balance Protection) for all accounts
- Differences by Regulations
FxPro uses an automated transaction monitoring and risk-management system to protect clients from any losses beyond their original investment.
Margin Call and Stop Out Levels of FXPro
Therefore, if you are trading on the MT4 platform, FxPro has the discretionary right to begin closing current open positions, starting from the most unprofitable, when the margin level of your account drops below 25%.
If the margin level of your account is equal to, or drops below, 20%, all your open positions will be automatically closed at the current market price, according to the Order Execution Policy.
If you are trading on the MT5 or cTrader platforms, FxPro has the discretionary right to begin closing current open positions, starting from the one requiring the most margin, when the margin level of your account drops below 40%.
If the margin level of your account is equal to, or drops below, 30%, all your open positions will be automatically closed at the current market price, according to our Order Execution Policy.
These stop outs are set to avoid larger losses that exceeds the account balance/equity.
NBP (Negative Balance Protection) for all accounts
But it is possible for you to have a negative balance in your trading account.
For example, in a high volatile market with larger trading volumes in an account, FXPro’s Stop Out may not be able to avoid exceeded losses.
Fortunately, FxPro offers Negative Balance Protection to its clients as part of the Client Agreement, thereby ensuring that clients cannot lose more than their overall investment.
Although this is not a regulatory requirement, FxPro provides this service as long as it is accepted in good faith and is not manipulated or abused.
If the broker finds that you are abusing the trading platform and did not follow the rules set by the broker, FXPro could decide to not cover exceeded losses.
For more information about NBP and its mechanism, visit the page here.
Differences by Regulations
FXPro is a multi-licensed Forex and CFD broker, therefor the conditions of margin call and stop our maybe different depending on the jurisdiction you are in.
For more information, please visit FxPro Official Website and see the comparison of account types for your region.
For the comparison of FXPro’s all account types, visit the page here.
For the comparison of FXPro’s all trading platforms, visit the page here.