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Our Stop Loss Calculator is designed to provide traders with the stop-out level of their positions. Knowing the stop-out level is essential for preventing account wipeouts, as it marks the point where the broker automatically closes positions to protect your balance. It helps manage risk by informing proper trade sizing, leverage use, and the placement of stop-loss orders. This understanding allows traders to plan strategically and maintain control, especially in volatile markets.

Pips distance from Stop-Out Level
Pips
Stop-Out Level

How to use the Stop-Out Calculator

The following steps will help you determine the level at which a margin call event could be initiated by your broker:

  • Select your Currency Pair: Start by selecting the currency pair you intend to trade.
  • Set your Equity: Define the total Equity of your account.
  • Specify the Margin: This field corresponds to the required margin of your position. 
  • Define the Stop-Out %: This parameter is set by your broker. depending on the asset you trade, your broker specifies a stop-out level, typically 20% or 30%. If your Equity falls below {Required Margin * Stop-Out %}, a stop-out order is automatically triggered.
  • Enter the Trade Size: To be specified in standard lots. One standard lot of EUR/USD corresponds to 100,000 Euros.
  • Enter the Price: Set the market price of the chosen Currency Pair.
  • Calculate the Stop-Out features: Click the “CALCULATE” button to view the distance in pips between the current spot price and the underlying price at which a stop-out event could occur. The calculator also displays the said price at which the broker initiates the margin call. 

FAQs

Yes, AvaTrade is legitimate. AvaTrade was founded in 2006 and became one of the most trusted and transparent Forex brokers worldwide.