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Margin Call and Stop Out

The biggest appeal of FX transactions is that they can operate hundreds of times as much money as they can by leveraging "leverage" on cash on hand (margin). Therefore, if the market moves in an unintended direction, a large loss will occur.
TTCM will notify you to inform you of the reduction in margin when the margin maintenance loss rate decreases below a certain percentage with the purpose of preventing loss spread of the principal as the loss on valuation of the margin balance expands. This is called "margin call".
In addition, when the amount of loss increases beyond a certain percentage, the target position (position) is automatically reverse traded (settlement). This is called "stop out".

AN EXAMPLE - When a loss occurs when holding a buying position

(*)"Margin maintenance ratio" indicates the ratio of net assets to the margin requirement margin. "Margin maintenance ratio (%)" = "effective margin" ÷ "necessary margin" × 100

Display margin call

When the margin maintenance rate falls below 80% and becomes subject to margin call, the profit and loss display column of MT4's terminal window is displayed in red.

Ross cut rule

When the margin maintenance rate drops to 50% or less, the loss cut (forced settlement) is executed in order from the position with the big evaluation loss among the open positions held by the customer. The margin maintenance rate can be confirmed within the transaction tab of the MT4 terminal window or within the cTrader open position tab.

AN EXAMPLE - Loss cut execution order when there are three unsettled openings

Open position Appointment date Valuation loss Order in which Rosscat is executed
Position A Xx hours xx minutes on Jun 1 -20,000 No. 2
Position B Xx hours xx minutes on Jun 4 -40,000 No. 1
Position C Xx hours xx minutes on Jun 8 -2,000 No. 3


* Depending on market conditions, the order of settlement contracts may be changed.

On the order of loss cuts due to lowering of liquidity

Since we enforce all transactions through "Liquidity Providers" (a network of financial institutions such as international investment banks and securities companies, which are commonly known as interbanks and are recognized worldwide) If liquidity declines markedly due to factors such as national holidays, economic trends, trading hours, etc., Rosscat may not be done in order.

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