XM Stop Out Level: 20% on Every Account, and How Far Price Can Move Before It Hits

If you trade with XM (XMTrading), the number that decides when your positions are closed for you is the stop-out level. This guide explains where XMTrading sets it, how the margin level that triggers it is calculated, and, with example figures, how far price can move against you before it happens. For the general concept across brokers, see our margin call and stop-out explained guide.

Key takeaways

• XMTrading's official account pages list the same levels for all four account types (Standard, Micro, Zero, KIWAMI): margin call at 50% margin level and stop-out at 20%.
• Margin level = equity / used margin x 100. Equity moves with every open profit or loss, so the level falls as a trade goes against you and rises when you add funds or close positions.
• The distance to stop-out is driven mainly by lot size relative to your equity. Higher leverage lowers the margin each trade uses, but it does not make a large position safe.
• XMTrading states a negative balance reset applies to all clients, so you cannot lose more than you deposited. A gap through the stop-out can still wipe out the whole balance.
• CB-Dogs cashback is paid per lot traded, including trades closed by stop-out, as long as each trade lasted more than 5 minutes.

What is the XM stop out level?

XMTrading's official pages list the following for every account type: a margin call at 50% and a stop-out (the Japanese pages call it ロスカット) at 20%. Both apply equally to Standard, Micro, Zero and KIWAMI, so choosing one account type over another does not make your positions safer or riskier on this point. If you are still choosing, our XM account types comparison covers the differences that do matter.

In plain terms:

• Margin call (50%): a warning stage. Your margin level has fallen to 50%, and XM notifies you that your account is under pressure. Nothing is closed yet.
• Stop-out (20%): the forced-close stage. When the margin level reaches 20%, the platform starts closing your open positions automatically, normally beginning with the position that has the largest loss, until the margin level recovers above the stop-out level.

Which position is closed first and how many are closed depends on the platform's logic and market conditions. Treat the order as typical behaviour, not a promise.

How margin level is calculated

The formula is:

Margin level (%) = equity / used margin x 100

• Equity is your balance plus (or minus) the floating profit or loss on open positions. (Credit or bonus may also be counted; see below.)
• Used margin is the amount the platform has set aside to hold your open positions. It depends on lot size, price and leverage.
• Free margin is equity minus used margin, the room you have left to open new trades.

A worked example, with example figures only:

Now suppose the trade moves against you:

• Margin call: margin level 50% means equity of 100 USD, so the floating loss is about 900 USD.
• Stop-out: margin level 20% means equity of 40 USD, so the floating loss is about 960 USD.

For 1 standard lot of EURUSD, 1 pip is worth about 10 USD, so a 960 USD loss is roughly 96 pips of movement against you. That is the answer to "how far can price go": about 96 pips in this example, before spread, swap and slippage.

How lot size and leverage change the distance

The stop-out trigger point is when equity falls to 20% of used margin. The loss you can absorb is therefore:

room before stop-out = equity - (20% x used margin)

Because the second term is small, the room is close to your full equity whatever the leverage. What changes the distance in pips is how much each pip costs you, which depends on lot size. With the same 1,000 USD and 500:1 leverage (example figures, 10 USD per pip per standard lot):

Doubling the lot size roughly halves the distance. Now change only the leverage for the 1-lot case:

Higher leverage buys a somewhat larger buffer in this example, but the main effect of leverage is that it lets you open a position far larger than your account can carry. At 100:1 you could not hold much more than 1 lot on 1,000 USD at all; at 500:1 you could hold 4 or 5 lots, and the stop-out would then be a few dozen pips away. Leverage is a ceiling on position size, not a safety setting. Our XM leverage guide covers the leverage tiers, and contract size, lot size and margin explained shows where used margin comes from.

A gold example

Gold moves in larger dollar amounts per lot, so stop-out arrives faster than many traders expect. XMTrading's partner terms treat 1 standard lot of gold as 100 oz. Example figures: gold at 4,000 USD, 500:1 leverage, balance 2,000 USD, 1 lot long.

• Used margin: 100 oz x 4,000 USD / 500 = 800 USD
• Margin level at open: 2,000 / 800 x 100 = 250%
• Margin call at 50%: equity 400 USD, so a loss of 1,600 USD
• Stop-out at 20%: equity 160 USD, so a loss of 1,840 USD

A 1 USD move in gold is worth 100 USD on 1 lot, so a 1,840 USD loss is a move of about 18.4 USD in the gold price. Gold can travel that far in a single volatile session, especially around data releases, which is why gold positions are the classic stop-out case. Spread and swap, which cost extra on gold, are ignored here; see our gold margin per lot guide and XM gold spread and conditions article for the real inputs.

Negative balance reset and gaps

Stop-out is meant to close positions before the account reaches zero, but it is not instantaneous. If the market gaps (over a weekend, or on a news spike), positions can be closed at a price worse than the 20% line, and the account can fall below zero. XMTrading states that all clients are covered by a negative balance reset (マイナス残高リセット): the negative amount is reset to zero, so you cannot lose more than you deposited. The details and limits are in our XM negative balance protection guide.

This protects you from owing XM money. It does not protect the balance you did deposit, which is exactly what a gap can take.

Hedged positions and bonus credit

• Hedging: XMTrading allows hedging inside one account (not across two accounts), and states that hedged positions in FX, gold and silver need zero margin. Locking a position in this way stops its used margin from growing, but the two legs still carry spread and swap, and the account can still be stopped out if equity keeps falling for other reasons.
• Bonus credit: if you hold a bonus, it is shown as credit on the account and may count toward equity, which can raise your margin level on screen. Do not assume the credit will survive a drawdown; check how your own account treats it. Bonuses also reduce the cashback paid on a trade, as described below.

How stop-out affects your cashback

CB-Dogs cashback is calculated per lot traded, not from profit or loss. A trade that XMTrading closes by stop-out is still a closed trade, so it counts like any other, with one condition that applies to every trade: XMTrading's partner terms exclude trades lasting 5 minutes or less from IB commission, and CB-Dogs pays 60% of the commission XMTrading actually pays. A position that is stopped out within 5 minutes of opening, which can happen during a fast spike, therefore earns no cashback. Trades supported by bonus credit also earn proportionally less. The full list is in which XM trades are excluded from cashback.

Current rates are shown here (these update automatically):

You can estimate your own figures with the cashback calculator.

How to stay away from the stop-out line

1. Size the trade from the stop-loss distance and the amount you are willing to lose, not from the maximum lot the platform lets you open.
2. Watch margin level, not only floating profit. A level that starts below a few hundred percent leaves little room.
3. Keep spare funds in the account instead of running at the limit, and avoid adding to a losing position.
4. Reduce size before known high-volatility events, and before the weekend if you cannot monitor the position.
5. Use stop-loss orders, remembering they can slip in a gap.

FAQ

What is the stop out level at XM?

XMTrading's official account pages list a stop-out at 20% margin level on all four account types (Standard, Micro, Zero and KIWAMI), with a margin call at 50%. Check your own account, as XMTrading can change these levels.

What is the difference between margin call and stop-out at XM?

How do I calculate margin level at XM?

Can I lose more than my deposit when stopped out?

Do stopped-out trades earn CB-Dogs cashback?

Summary

XMTrading uses the same 50% margin call and 20% stop-out on all four account types. Margin level is equity divided by used margin, and the real distance to stop-out is set mostly by your lot size relative to your equity: in the example figures above, 1 lot on a 1,000 USD account has roughly 96 pips of room, while 2 lots has about 46. Plan trade size from the loss you accept, treat leverage as a ceiling and not a target, and remember that stopped-out trades still count toward cashback when they last over 5 minutes.