How to Avoid a Margin Call or Stop Out?

To avoid a Margin Call or Stop Out, follow these risk management strategies:

1. Maintain Sufficient Account Balance

• Ensure your account has enough free margin to sustain open trades.
• Avoid opening more positions than your account can handle.

2. Manage Leverage Wisely

• Lower leverage requires enough capital to keep trades open.
• Higher leverage increases risk, so trade cautiously and avoid excessive exposure.

3. Control Lot Sizes & Risk Exposure

• Adjust your lot sizes to manage risk effectively.
• Monitor your free margin and avoid overtrading.

4. Use Stop-Loss Orders

• Set stop-loss levels to protect your account from excessive losses.
• This prevents trades from running into deep negative territory.

5. Act Before a Margin Call Hits

• If your margin level is low, consider depositing more funds to support your trades.
• Close losing trades early to prevent automatic liquidation by the system.

Effective risk management helps maintain control over your account and prevents unnecessary liquidations.