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Stop-Out Level vs. Margin Call

When choosing a Forex broker and planning to open your first account, you will probably hear a lot about stop-out level, margin call, and leverage. While many brokers will only talk about margin calls, others seem to delineate a clear border between margin calls and stop-out levels. What is a stop-out level, and what is the difference between a stop-out level and a margin call? To start with, let’s quickly review the definition of margin. For many people, …

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