Gap risk check
What a jump past your stop would cost, and the size that fits.
Free risk tools
Margin and stop-out calculator
Leverage decides how much you can open, not how much you should. See the margin a position needs and, more important, how far the price can move against you before the broker closes it for you.
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The position
The answer
An example with typical numbers. Change any box to use your own.
The price can move 80 against you (2.0% of the price) before the broker's stop-out at 50% closes the position.
- Margin for this position
- $2,000.00 at 1:100 (position worth $200,000.00).
- Margin level after opening
- 250% (equity $5,000.00 / used margin $2,000.00). Free margin $3,000.00.
- Margin call at 100%
- After a move of 60 against you (1.50% of the price).
- Stop-out at 50%
- After a move of 80 against you (2.00% of the price).
- Real leverage
- 40.0 to 1 on your equity: a 2.50% move against you costs everything you have in the account.
The usual MetaTrader formula (contract size x lots x price / leverage). Brokers can use other margin rates for metals and indices, raise margin over weekends and news, and some stop out below the stop-out level in a gap. Other open positions are assumed not to move. Check your broker's contract specification.
Education only, not investment advice. The answer comes from the numbers you typed in, not from your account or the market. Simulated results are hypothetical and have limits: real trading has slippage, gaps, changing results and emotions. Trading leveraged products can lose money quickly, including all of it. Risk warning
Educational only, not financial advice; trading involves risk.
The stop you did not choose
Every leveraged account has a second stop: the broker's stop-out. When the equity falls to a set share of the margin in use, the platform starts closing positions, largest loss first, at whatever price the market gives. A trader who sizes by margin ("I can open 2 lots") instead of by the stop ("one loss costs 1%") hands that exit to the broker.
The fix is to size from the stop with the position size calculator, then check here that the stop-out is far beyond your own stop. If it is not, the position is too big, whatever the leverage allows.
Next tools
Position size calculator
The lot size at which a stop-out costs the amount you chose.
Correlated risk check
Which of your open trades are the same bet.
Pricing
Three ways in. Pick yours.
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Baroq never holds your money and never trades for you. Educational only, not financial advice; trading involves risk.