The margin call and stop out levels are based on the account types offered by Exness, as presented below:
|Account||Margin Call||Stop Out|
Stop Out Protection
This is a stop out strategy that calculates a "virtual mid-price equity" rather than real equity. Stop Out Protection can protect against stop outs in the event of a sudden spread widening, which occurs when a bid price falls suddenly while the ask price rises while the middle price (mid-price) remains constant.
Do note that this feature may not be available for some accounts with Unlimited Leverage to achieve a balance between trader benefits and risks. Get to know the requirements for unlimited leverage in this article.
Stop Out Protection may delay a stop out until the virtual mid-price equity reaches stop out conditions.
Exness also reserves the right to revoke Stop Out Protection from a client’s account, if found to be abusing the tool. This includes basing their trading success on Stop Out Protection as a feature, rather than a protection tool.
Calculating virtual mid-price equity
Let’s compare standard stop out to Stop Out Protection 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.
- The swap charges on the instruments are zero.
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
Stop Out Protection
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 (balance) - 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.
Stop Out Protection 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 commissions, half of one side of the commission is discounted in addition to the current spread discount. Stop Out Protection can delay a standard stop out in this process.
Note: The discount is virtual and calculated only for the purpose of delaying stop out.