HFM (formerly HotForex): An updated explanation of account requirements, including margin calls and the safety of stop-loss levels for overseas FX brokers. This article explains stop-loss levels, lot trading, and margin requirements for the overseas FX broker HFM (HotForex). HF Markets sets stop-loss lines to a certain extent. Even if you incur an unrealized loss, that doesn’t mean you can continue to hold onto the loss forever. At a certain level, a forced stop-loss will occur. What is the margin maintenance ratio, which is the stop-loss level?
- HFM Basic Information
- Basic Concepts of HFM Loss Cuts
- HFM’s Stop Out Levels and Comparison with Other Brokers
- How to Calculate Loss Stops
- Strategies for Preventing Loss Cuts with HFM
- The Relationship Between HFM’s Zero-Cut System and Stop Losses
- Frequently Asked Questions About HFM Stop Losses
- Q1. What are HFM’s stop loss levels?
- Q2. Does the stop loss stop at exactly 20%?
- Q3. What is the difference between stop loss and stop loss?
- Q4. Will I become in debt if a stop loss is triggered?
- Q5. Is there a set order for stop loss triggers?
- Q6. Can a stop loss be stopped by making an additional deposit?
- Q7. Do stop loss events occur on weekends?
- Related
HFM Basic Information
| Company Name | HF Markets（SV） Ltd. |
| Year of establishment | 2010 |
| Service Overview | A large brokerage providing services in over 180 countries worldwide with millions of registered accounts |
| Financial products handled | Foreign Exchange (FX), Stock Indices/Commodities, Stock CFDs/Cryptocurrencies |
| Trading Platform | MetaTrader 4（MT4）、MetaTrader 5（MT5） |
| Maximum Leverage | 2,000x |
| User Support | Multilingual support |
| Financial License | ✔ FCA (UK, Financial Conduct Authority) ✔ FSCA (South Africa) ✔ DFSA (Dubai) ✔ FSA (Seychelles) |
| Deposit and Withdrawal Methods | Bank transfer Credit/Debit card (VISA/Master/JCB, etc.) bitwallet / BXONE / Binance Pay / Cryptocurrency |
| Account Type | Cent Account Premium Account Pro Account Zero Account Top-up Bonus Account |
Basic Concepts of HFM Loss Cuts
We will explain the basic concepts of HFM (formerly HotForex) loss cuts (forced liquidations) in order of mechanism, levels, and points to note, so that even beginners can understand.
① What is a Loss Cut?
A loss cut is a mechanism that automatically liquidates positions to prevent further losses when the margin maintenance ratio falls below a certain level.
👉 It is the final safety measure to protect traders’ capital.
② HFM Loss Cut Levels (Basics)
The following are the basics for HFM, regardless of account type.
| Item | Condition |
|---|---|
| MARGINCALL | Margin Maintenance Rate 50％ |
| LossCUT | Margin Maintenance Rate 20％ |
③ Margin maintenance rate calculation method
Margin maintenance rate (%) = Equity margin ÷ Required margin × 100- Equity = Account Balance ± Unrealized P&L
- Required Margin = Margin required for open positions
④ Stop Loss Process
1️⃣ Margin Maintenance Ratio Below 50%
→ Margin Call (Warning)
2️⃣ Below 20%
→ Automatically liquidate positions with large unrealized losses
3️⃣ All positions liquidated → Account integrity
⑤ Important Points to Note When Stop Loss Triggers
❗ It doesn’t always stop at exactly 20%
During sudden fluctuations,
Slippage
Gap
may result in liquidation below 20%.
HFM’s Stop Out Levels and Comparison with Other Brokers
Below is a comparison of HFM (formerly HotForex)’s stop out levels with those of other major FX brokers.
*The stop out level is the percentage below which a position will be liquidated if the margin maintenance ratio falls below this level.
🔎 HFM’s Stop Out Levels
HFM (HotForex)
Margin Call (Margin Maintenance Ratio Warning)
Normal: 50%
Some Accounts (Micro): May be 40%
Loss Out (Forced Liquidation) Level
Normal: 20%
Micro Accounts: May be 10%
Zero Cut (No Margin Call): Yes
👉 HFM has a low stop out level, allowing for relatively long-term tolerance even when unrealized losses become large (i.e., it is easy to utilize leverage).
📊 Major Overseas FX Brokersとの比較
| Broker | Loss Cut（Stop Out） | Margin Call |
|---|---|---|
| HFM | 20％ | 50％ |
| XMTrading | 20％ | 50％ |
| FXGT | 20％ | – |
| AXIORY | 20％ | 50％ |
| Tradeview | 100％ | – |
| Exness | 0％ | 60％ |
| iFOREX / Land-Prime | 0％ | – |
🤔 Points of Comparison
✅ Benefits of Low Stop Losses
✔ Unrealized losses increase to an acceptable level
✔ Utilize high leverage
✔ Suitable for reversal-focused trading strategies
👉 Brokers such as HFM, XM, and AXIORY have low stop losses of around 20%, making them advantageous for trading in high-leverage environments.
⚠ Brokers with high/fast stop losses
A 100% stop loss, like Tradeview, means positions are likely to be liquidated relatively quickly.
⚠ Brokers with almost no stop losses
Brokers such as Exness and iFOREX have stop losses at 0%, making them less susceptible to stop losses, but
Very low maintenance rates ⇒ Risk of large unrealized losses
Concerns about loss amplification during sudden fluctuations should be kept in mind.
How to Calculate Loss Stops
We’ll explain how to calculate loss stops in an easy-to-understand manner: formula → procedure → numerical examples → practical points.
(This assumes HFM, but the basics are the same for all FX brokers.)
① Basic formula for determining loss stops
Margin Maintenance Ratio (%)
Margin Maintenance Rate = Equity Margin ÷ Required Margin × 100Terminology
Equity = Account Balance ± Unrealized P&L
Required Margin = Margin required for open positions
👉 HFM Stop Loss Level: 20%
② Conditions for triggering stop loss (HFM)
Margin maintenance rate ≦ 20%In other words,
Equity Margin ≦ Required Margin × 0.2③ Calculation method of required margin
Margin Requirements
Required margin = Trading volume × Current price ÷ Leverage④ Numerical example ① (most basic)
Items
Account Balance: ¥100,000
Currency Pair: USD/JPY
Lot: 1 lot (100,000 units)
Exchange Rate: ¥150
Leverage: 500x
Margin Required
100,000 × 150 ÷ 500 = 30,000 yenStop loss trigger line
30,000 × 0.2 = 6,000 yenAllowable unrealized loss
100,000 − 6,000 ＝ 94,000 yen👉 Stop loss when unrealized loss reaches approximately 94,000 yen
⑤ Numerical example ② (multiple positions)
Conditions
Balance: ¥100,000
Total Margin Required: ¥50,000
Liquid Stop Line
50,000 × 0.2 = 10,000 yenAllowable unrealized loss
100,000 − 10,000 ＝ 90,000 yenThe larger the position, the quicker the stop loss will occur.
Strategies for Preventing Loss Cuts with HFM
This article presents practical strategies for preventing loss cuts with HFM (formerly HotForex).
Basic premise: Loss cuts are something to avoid.
Loss cut level: 20%
This is not a “safety line” but a final forced exit line.
Goal:
👉 Always maintain a margin maintenance ratio above 300%.
Lot management (most important).
Safe lot guideline (FX).
| Credit | Max Lots |
|---|---|
| 5万円 | 0.05～0.1 |
| 10万円 | 0.1～0.2 |
| 30万円 | 0.3～0.5 |
| 50万円 | 0.5～0.8 |
👉 Determine lot size based on maintenance rate, not “maximum leverage”
③ Stop Loss Strategy (Required)
Recommended Rules
Losses per Trade
👉 Within 1-2% of Balance
At Entry
👉 Always Set a Stop Loss
Example
Balance of ¥100,000
Acceptable Loss of ¥2,000
→ Back-calculate Lots and Stop Losses
The Relationship Between HFM’s Zero-Cut System and Stop Losses
The relationship between the official HFM (formerly HotForex) zero-cut system and stop losses is summarized below:
Differences in Role → Activation Order → Actual Behavior → Important Points. It is affected by the target amount, swap points, instrument, and order size. The same applies to cryptocurrencies such as Bitcoin and Ethereum.
① First, the conclusion: They have completely different roles.
Loss-Cut:
👉 Forced liquidation rule (stops mid-way) to prevent further losses.
Zero-Cut:
👉 Final rescue measure if your balance still goes negative.
👉 Stop-Loss → (if not completed in time) → Zero-Cut
These are the order of events triggered by the server. Be aware of this if you are using an automated trading software (EA).
② Positioning of Stop-Loss (HFM)
The basic settings for HFM are as follows:
| Item | Condition |
|---|---|
| Margin Call | Margin Maintenance Rate 50％ |
| Stop loss | Margin Maintenance Rate 20％ |
- If the maintenance rate falls below 20%,
- 👉 Positions are liquidated.
- This is usually where losses are expected to stop.
③ What is the Zero-Cut System?
Zero-cut is a system that prevents additional charges (margin calls) even if your account balance goes negative due to a sudden market fluctuation that prevents a stop loss.
Features of HFM’s Zero-Cut System
No margin calls
Negative balances are reset to zero
No trader debt risk
④ Why is a zero-cut system necessary even with a stop loss system?
The following situations may prevent stop losses from functioning properly:
Sudden fluctuations following the release of economic indicators
Large gaps at the start of the week
Crashes and surges in cryptocurrency prices
Slippage due to a lack of liquidity
👉 Settlement prices jump,
👉 Execution at prices significantly below 20%
👉 Possibility of a negative balance
This is when the zero-cut system kicks in.
⑤ Relationship between stop loss and zero cut (illustrated image)
Unrealized Loss Increase
↓
Maintenance Rate 50% (Warning)
↓
Maintenance Rate 20% (Loss Cut)
↓
[Normal] Ends here
↓
[Abnormal] Balance Negative
↓
Zero Cut Triggered (Balance 0)Frequently Asked Questions About HFM Stop Losses
This section summarizes frequently asked questions (FAQs) about stop losses on HFM (formerly HotForex), focusing on points that beginners and intermediate traders often struggle with. You can find some explanations about the service on the sitemap on the home page. There are also various calculators and tools available, so please make use of them.
Q1. What are HFM’s stop loss levels?
A.
Margin Call: 50%
Loss Stop: 20%
If your margin maintenance ratio falls below 20%, positions with large unrealized losses will be automatically liquidated.
Q2. Does the stop loss stop at exactly 20%?
A.
No. It’s not always exactly 20%.
During sudden fluctuations
Economic indicator releases
Opening the trading window at the start of the week
, etc., orders may be executed at prices well below 20%.
Q3. What is the difference between stop loss and stop loss?
A. It is affected by spreads and lot size. Please refer to the following for details on the services offered. Be careful when trading CFDs and currency pairs, as there are restrictions. Official website support is also available, so log in and get a brief explanation of the impact and risk management.
Items: Stop Loss, Stop Loss Settings, Set Automatically, Purpose, Loss Limitation, Account Protection, Timing, Voluntary, Mandatory Management, Trader/Brand
👉 Stop loss is a last resort,
👉 Stop loss is the primary stop loss.
Q4. Will I become in debt if a stop loss is triggered?
A.
No.
HFM uses a zero-cut system,
so there is no margin call even if your account balance goes negative.
*However, there are exceptions if a violation or abuse of the terms of service is detected.
Q5. Is there a set order for stop loss triggers?
A.
Yes.
Positions with the largest unrealized losses will be liquidated first.
👉 If the maintenance rate recovers with partial liquidation,
👉 not all positions will be liquidated.
Q6. Can a stop loss be stopped by making an additional deposit?
A.
It depends on the timing.
Before stop loss → Effective
After stop loss → May not be effective in time
👉 At risk levels (maintenance rate below 200%),
early action is required.
Q7. Do stop loss events occur on weekends?
A.
Yes, they do.
At the start of the next week,
positions may be liquidated immediately, even exceeding the stop loss price.
👉 Be careful when carrying over positions over the weekend.
コメント