This article explains FXGT’s forced loss cut level, margin maintenance rate, and calculation method. If traders do not know anything about stop-loss cuts, their positions may be suddenly liquidated, which is quite disadvantageous for traders. You should know how to calculate it.
- FXGT Basic Information
- The Basics of FXGT’s Loss Cut System
- FXGT’s Stop-Out Criteria and Margin Calls
- How to Calculate the Margin Maintenance Ratio
- Strategies for Avoiding Loss Cuts
- FXGT FAQs Regarding Stop-Outs
- ❓ Q1. What is the difference between stop-outs and margin calls?
- ❓ Q2. When does stop-out occur at FXGT?
- Q3. What happens when a stop loss is triggered?
- Q4. What is the difference between a stop loss and a zero cut?
- Q5. How are multiple positions handled?
- Q6. Is there a way to avoid a stop loss?
- ❓ Q7. Are there any FIFO (first in, first out) or specific position priority rules?
- ❓ Q8. Are stop-loss levels always the same?
- Q9. Can I trade again after a stop loss?
- Related
FXGT Basic Information
| Operating company | GT Global Ltd. |
| Head office location | Republic of Seychelles |
| Financial services provided | FX, CFD (crude oil, gold, stock index, commodities, etc.), virtual currency trading, etc. |
| Leverage | FX currency pairs: up to 5,000x Cryptocurrency: up to 1,000x |
| Trading Platform | MetaTrader 4 (MT4) MetaTrader 5 (MT5) FXGT’s proprietary web |
| Account Type | Standard Account ECN/Pro Account Crypto Max |
| Bonus Promotions | New account opening Deposit bonuses and limited-time promotions |
| Financial License | Seychelles Financial Services Authority (FSA) Financial Services Commission of South Africa (FSCA) Vanuatu (FSC) |
| Safety and reliability | Separate management Partial compensation system and insurance enrollment |
| Stop loss and margin calls | No margin calls (negative balance requests) (zero cut) |
The Basics of FXGT’s Loss Cut System
This is a beginner-friendly explanation of the basics of FXGT’s loss cut system (margin maintenance rate, forced liquidation, zero cut, etc.) 👇
📌 1. What is a Loss Cut (Basic Mechanism)?
A loss cut (forced liquidation) is a mechanism that automatically closes a position when unrealized losses increase and the margin maintenance rate falls below a certain level.
This prevents a significant decrease in account balance.
FXGT also implements this basic loss cut.
📊 2. Margin Maintenance Ratio and Margin Call
FXGT has the following tiered safety measures in place:
🔹 ① Margin Call
A margin call occurs when the margin maintenance ratio falls below a certain level (e.g., 50%).
You will receive a warning, such as a red screen on your MT4/MT5 screen.
At this point, your position will not be closed.
(The specific margin maintenance ratio varies depending on your account type.)
📌 3. Criteria for Triggering a Stop Loss (Margin Maintenance Ratio)
Typical examples at FXGT include:
| Type | Margin | Loss Cut |
|---|---|---|
| Standard / PRO | 50% | 20% |
| Optimus | 50% | 0% |
| ECN / Crypto | 70% | 40% |
📉 4. How Stop Losses Work
When a stop loss is triggered:
Positions with the largest losses are automatically closed, starting with the positions with the largest losses.
Positions are eventually closed until the margin maintenance ratio reaches a certain level.
(Losses are confirmed, resulting in a capital loss.)
📈 5. Zero-Cut System (FXGT Features)
FXGT employs a zero-cut system (Negative Balance Protection).
✔ Even if a negative balance (debt) occurs,
➡ your account balance is automatically reset to zero.
✔ Losses (margin calls) greater than your account balance will not be incurred.
✔ Other accounts and eWallets are not affected.
✔ No limits on the number of times or amount.
In other words, even if a sudden fluctuation causes a stop loss to be triggered in time and your account goes negative, FXGT will cover the debt, allowing you to bring your account balance to zero without any margin calls or debt.
FXGT’s Stop-Out Criteria and Margin Calls
We’ll explain FXGT’s stop-out criteria (stop-outs/forced liquidation/forced loss-cuts) and margin calls (warnings based on margin maintenance ratios) in an easy-to-understand manner, based on the latest official information. 👇
🔹 1. What is a margin call?
A margin call is a warning signal issued when your margin maintenance ratio drops.
This is a notification that your margin maintenance ratio is dropping, so you should consider adding additional funds or liquidating your positions. It is not an actual forced liquidation (stop-out).
At FXGT, a margin call occurs when a certain margin maintenance ratio is reached.
🔹 2. What is a stop-out?
A stop-out is a system that automatically liquidates a position, partially or completely, when your margin maintenance ratio falls below a certain level.
This function is activated when your unrealized losses become so large that you can no longer maintain your margin, preventing further losses.
📊 3. FXGT Standards (By Account Type)
| Account Type | Margin Call | Loss Cunt |
|---|---|---|
| Mini Account | 50% | 20% |
| Standard Account | 50% | 20% |
| PRO Account | 50% | 20% |
| Optimus Account | 50% | 0% |
| ECN Zero Account | 70% | 40% |
| Crypto Max / CryptoX | 70% | 40% |
🔹 4. What is “Margin Maintenance Ratio”?
Margin maintenance ratio is calculated using the following formula:
Margin Maintenance Ratio (%) = (Equity ÷ Required Margin) × 100
Equity: Balance + Unrealized P&L
Required Margin: Minimum margin required to maintain an open position
The lower this ratio, the closer you are to the risk level.
How to Calculate the Margin Maintenance Ratio
Below, we’ll explain how to calculate the margin maintenance ratio in the following order: definition → formula → specific example → common misconceptions to avoid confusion in practice.
1️⃣ What is the Margin Maintenance Ratio?
The margin maintenance ratio (Margin Level) is an indicator that shows how safely you can maintain your positions with your current capital.
Forex brokers (such as FXGT) use this figure as a basis for triggering margin calls (warnings) and stop-losses (forced liquidations).
2️⃣ Margin Maintenance Ratio Calculation Formula (Very Important)
Margin Maintenance Ratio (%)
= Equity ÷ Required Margin × 100
👉 As unrealized losses increase, equity decreases.
👉 Required margin is determined by position size and leverage.
3️⃣ Calculation Example 1 (Basic Pattern)
Conditions
Account Balance: ¥100,000
Unrealized Loss: -¥20,000
Required Margin: ¥50,000
Calculation
Equity = 100,000 − 20,000 = ¥80,000
80,000 ÷ 50,000 × 100 = 160%
4️⃣ Calculation Example 2 (Margin Call Level)
Conditions
Account Balance: ¥100,000
Unrealized Loss: -¥75,000
Required Margin: ¥50,000
Calculation
Equity = ¥25,000
25,000 ÷ 50,000 × 100 = 50%
5️⃣ Calculation Example 3 (Liquid Stop Level)
Conditions
Account Balance: ¥100,000
Unrealized Loss: -¥90,000
Required Margin: ¥50,000
Calculation
Equity = ¥10,000
10,000 ÷ 50,000 × 100 = 20%
Strategies for Avoiding Loss Cuts
Dealing with a loss cut after it happens is too late; it must be avoided through advance planning and daily trading rules.
Here, we’ll organize practical loss cut avoidance strategies, categorized by level, that can be used directly at FXGT. 👇
🔑 Basic Prerequisites (3 Principles to Follow)
Loss cuts are the final line of defense (don’t make them your strategy)
Manage your margin maintenance ratio (not your balance)
Unrealized losses accelerate as a function of “time x lots”
Decide your lot size by “backwards calculation” (no guesswork)
❌ Common Mistakes
¥100,000 Balance → Can I do 0.5 lots?
With 500x leverage, you have plenty of room.
👉 This is a direct line to a stop loss.
Always use a stop loss (SL).
Reason
“Leave stop losses to the market.”
“Control stop losses yourself.”
Guidelines
Day trading: 10-30 pips
Swing trading: 50-150 pips
👉 No SL = potential stop loss.
Cut unrealized losses with “time.”
Bad example
It should bounce back eventually…
Good example
After entry
No movement for 30 minutes to an hour
Not moving in the expected direction
→ Withdraw with a small loss.
📌 “Time is not on your side” with unrealized losses.
Limit the number of positions.
Dangerous pattern
Intention to diversify currency pairs
→ Actually, they are in the same direction (e.g., buying dollars).
👉 Actual lot size increases, causing a sudden drop in maintenance rate.
Example rule
Same currency direction: Maximum 2 positions
Total lot limit: Balance x 0.0004
FXGT FAQs Regarding Stop-Outs
These are frequently asked questions (FAQ format) about stop-outs (forced liquidation/stop-outs) at FXGT. We’ve compiled them based on the official FAQ and official explanations. 👇 Stop-outs are possible when using high leverage.
❓ Q1. What is the difference between stop-outs and margin calls?
Answer:
Margin call: A warning occurs when your margin maintenance rate drops. This does not prompt you to deposit additional funds, but rather notifies you that the stop-out level is approaching. Your position will remain open even if a margin call is issued.
Stop-Out: If your margin maintenance rate falls below the threshold for your account type, your position will be automatically liquidated.
❓ Q2. When does stop-out occur at FXGT?
Answer:
The stop-out threshold (margin)
| 口座タイプ | マージンコール | ロスカット |
|---|---|---|
| Optimus口座 | 50% | 0% |
| ミニ／スタンダード／PRO 口座 | 50% | 20% |
| ECN Zero／Crypto Max 口座 | 70% | 40% |
Q3. What happens when a stop loss is triggered?
Answer:
When the margin maintenance ratio falls below the stop loss level, the FXGT system will force-liquidate positions, starting with those with the largest unrealized losses. This will continue until the margin maintenance ratio improves above the standard. Remaining positions may be maintained even after a stop loss.
Q4. What is the difference between a stop loss and a zero cut?
Answer:
Loss cut: A “forced liquidation” rule when the margin maintenance ratio falls below a certain level.
Zero cut: Even if a stop loss is not triggered in time and your account balance goes negative, FXGT will automatically reset the negative balance to zero and no margin call (debt) will be incurred.
Q5. How are multiple positions handled?
Answer:
When holding multiple positions, FXGT will stop-liquidate positions starting with those with the largest unrealized losses. This process will continue until the margin maintenance ratio again exceeds the standard.
Q6. Is there a way to avoid a stop loss?
Answer:
FXGT’s FAQ recommends the following methods:
✔ Adjust the size of your positions to match your capital to maintain a high margin maintenance ratio.
✔ Add additional funds to your trading account if your margin maintenance ratio drops.
✔ Reduce risk by setting a low leverage.
✔ Set automatic stop-loss orders.
❓ Q7. Are there any FIFO (first in, first out) or specific position priority rules?
Answer:
FXGT’s FAQ clearly states that “positions with the largest unrealized losses will be settled first” regarding stop-loss and margin calls (see Q5 above). However, specific rules such as FIFO or flat lot priority are not mentioned in the public FAQ. If you would like to confirm this, you will need to contact support.
❓ Q8. Are stop-loss levels always the same?
Answer:
The criteria for stop-loss and margin calls may vary depending on your account type and region. Please check your FXGT My Page or Trading Terms page for the latest applicable terms.
Q9. Can I trade again after a stop loss?
Answer:
As long as your account balance remains after a stop loss, you can continue trading as usual. If your balance is zero (after the stop loss is applied), you can continue trading by depositing funds again and opening a position.
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