Step 01 · Risk & Position

How far can price go against you before the broker closes it?

Margin decides how much of the account a position locks up. The stop-out level decides who closes the trade — you, or your broker. This tool works out both, and says which one gets there first.

Your setup

Take the leverage and the stop-out level from your account's contract specification. Both differ by broker and by jurisdiction, and both change the answer.

Account

Equity, not balance — floating profit and loss counts towards the margin level, which is exactly why a position can be closed while the balance still looks healthy.

The position

Margin comes from the notional value, so a price is required. Changing the symbol clears this field on purpose: a price left over from another instrument gives a confident answer that is wrong by orders of magnitude.

Broker rules

The margin level at which your broker starts closing positions. Commonly 50%, but 20%, 30% and 100% are all in use — check yours rather than assuming.

Used to answer the only question that matters here: does your stop fire before the broker's does? Leave it empty if you trade without one.

Diagnosis

Margin on its own is just an amount locked up. These checks turn it into a judgement: can this position survive an ordinary adverse move, and is your stop loss still the thing that decides the loss?

Who closes the trade

A stop loss only limits the loss if it is reached first. When the stop-out sits closer than the stop, the broker decides the exit and the size of the loss — not you.

Why this is the real limit

Risk calculators assume the stop loss is what closes a losing trade. That assumption quietly fails on a heavily margined account: the stop-out arrives earlier, at a distance nobody chose, and the realised loss is whatever the market happened to be doing at that moment. Sizing so the stop stays in front restores the assumption every other calculation on this site depends on.

What leverage actually changes

Higher leverage ties up less margin. It does almost nothing for how far price can go against you, because the loss that closes you out comes out of equity either way.

Leverage Margin Free margin Margin level Room (pips) Use

How this is calculated

Margin required is the position's notional value divided by the leverage, converted to your account currency: lots × contract size × price ÷ leverage. It is not a cost and it is not at risk — it is collateral held while the position is open, and it comes back when you close.

The margin level is equity ÷ used margin × 100. As a position moves against you the equity falls, so the level falls with it. When it touches the broker's stop-out level, positions are closed automatically — the distance shown here is how many pips of adverse movement that takes.

Leverage does not change what a trade can lose; lot size and stop distance do. What it changes is how much collateral is parked against the position, and therefore how much equity is left free to absorb a drawdown. The danger is indirect: cheap margin makes it easy to open a size the account could not otherwise carry.

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Related tools

Brokers differ on the details: some apply a margin call before the stop-out, some close the largest loser first while others close everything at once, and hedged positions may use reduced margin. Treat the output as this position seen on its own, on a normal day.