Key takeaways
- Leverage is set per group; margin can also be set per symbol.
- Margin call warns; stop-out closes positions.
- Plan margin changes before known volatile events.
The basics
Leverage determines how much margin a position requires. Margin call is a warning level; stop-out is the level at which positions are closed automatically to protect the account and the broker.
Before volatile events
Brokers often raise margin requirements ahead of elections, central bank decisions or weekends for some instruments. Announce the change in advance and apply it on time.
Checks after changes
- Margin levels on a sample of accounts.
- No unexpected mass stop-outs.
- Client notices published.