|Account||Margin Call||Stop Out|
Custom stop out
It is possible to set your own stop out level, up to 75% of your current equity. This feature is available for existing and new trading accounts, with any leverage setting and any trading instrument on offer. Exness reserves the right to disable custom stop out at any time, but you will be informed of any modifications ahead of time.
Custom stop out can only be set in your web-based PA area, and we recommend following the link to find out how to set up custom stop out for your trading accounts.
Mid-price stop out
This is an approach to stop out that calculates a “virtual mid-price equity” instead of a real equity. Mid-price stop out can protect against stop out in the case of sudden spread widening, which is when a bid price goes down suddenly as the ask price goes up while the middle price (mid-price) stays the same.
Mid-price stop out may delay a stop out until the virtual mid-price equity reaches stop-out conditions.
Calculating virtual mid-price equity
Let’s compare standard stop out to mid-price stop out in an example:
A trader has an account balance of USD 100.
- Their first order is 1 lot BUY with a floating loss of USD 40.
- Their second order is 1.5 lots BUY with a floating loss of USD 60.
- The current spread is USD 10.
Standard stop out
These orders result in stop out because the equity is calculated to be 0.
- 100 account balance - 40 floating loss - 60 floating loss = 0 account balance
Mid-price stop out
These orders are calculated differently (keeping in mind the USD 10 spread).
- The first order is discounted: spread x lots / 2 = USD 10 x 1 / 2 = USD 5.
- The second order is discounted: spread x lots / 2 = USD 10 x 1.5 / 2 = USD 7.5.
The virtual middle price equity then calculates:
- 100 (equity) - 40 (floating loss) + 5 (discount) - 60 (floating loss) + 7.5 (discount) = 12.5
With an account balance of USD 100, returning USD 12.5 will not result in a stop out.
If the spread suddenly widens equally, -5 for bid and -5 for ask (spread now USD 20), the virtual mid-price equity will remain USD 12.5 since:
- 100 (equity) - 45 (floating loss) + 10 (new discount) - 67.5 (floating loss) +15 (new discount)
So stop out is delayed until the virtual mid-price equity and real equity both return a stop out condition.
Mid-price stop out divides bid and/or ask prices by 2 (bid+ask /2) and calculates a discount of half the spread (spread x number of lots /2) for each open order before checking for stop out. For account types with commission, half of one side of the commission is discounted in addition to the current spread discount. Mid-price stop out can delay a standard stop out in this process.
Note: The discount is virtual and calculated only for the purpose of delaying stop-out.