When trading Forex & CFDs, you need make sure that you funds to support your open positions.
If you have got lesser money than the required margin, all your positions will be liquidated(closed) automatically to avoid further losses.
Margin call level is 40% with FBS
FBS has set the margin call level to 40%.
This means that the margin level in your account goes below 40%, FBS will recommend you that you need to deposit more money or close some positions so you have enough margin to support other positions.
You can check your margin level in MT4 trading account as below.
Margin call is just a notification that you will receive in MT4 terminal.
Please note that you do not receive any emails or phone calls from FBS, but it is your responsibility to manage your positions.
Stop out level is 20%
FBS has set the Stop out level to 20%.
Stop out occurs when your margin level goes below 20% and it will close your positions automatically to avoid further losses.
After the margin level goes below 20%, there is nothing you can do but all the positions would be already closed.
Although you may lose all your originally deposited funds, FBS does not charge for negative balance in any cases.
Meaning that if an account balance goes below 0, FBS will fix the balance to 0 for you.
Hedging but stop out
For accounts with variable spreads, you need to know that you can not perfectly hedge positions.
Around news time and weekends and etc, spreads would go wider and the required margin for hedged positions would also go higher.
FBS offers fixed spread environment with “Micro” and “Zero spread” account.
So you can perfectly hedge your positions with these accounts, but others.