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How are stopped-out positions handled? - Knowledgebase / Trading / Trading Conditions - INFINOX Client Services

How are stopped-out positions handled?

When your account equity falls below the required margin level, positions will be automatically closed (stopped out) to help prevent further losses.




📉 Stop-Out Process

  • If your margin level falls below 20%,

  • Positions will begin closing automatically,

  • Starting with the largest losing position first,

  • Until the margin level recovers to an acceptable level.




🛡️ Why does this happen?

This process:

  • Helps protect your account from entering a negative balance

  • Manages risk in accordance with our trading conditions

  • Prevents further exposure during adverse market movements




📊 Margin Level Formula

Margin Level = (Equity ÷ Used Margin) × 100%

Monitoring your margin level is essential to avoid automatic liquidation.



⚠️ This content is provided for informational purposes only and does not constitute investment advice. Trading with leverage involves significant risk.

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