"My balance went negative even though I was stopped out," "I thought it was supposed to stop at a margin maintenance ratio of 20%"—unexpected things happen with stop-outsthat stop-outs are "not a mechanism that guarantees execution at that level." The stop-out level is not the line where losses stop, but merely the line where settlement processing begins.
This article directly examines the original text of the official websites, FAQs, and terms of service of 10 major overseas forex brokers. It lists the stop-loss and margin call levels for each account type, along with the source URL and the date of verification . Furthermore, it corrects the margin maintenance ratio calculation formula according to the official definition and shows the procedure for working backward to determine "how much the price needs to move before a stop-loss is triggered." The article goes beyond simply listing numbers and delves into the parts of each company's terms and conditions that state "neither the execution price nor the receipt of notifications is guaranteed."
Conclusion | Key Points Regarding Stop-Loss Orders in Overseas Forex Trading (as of September 2026)
- A stop-loss order does not guarantee that the order will be executed at that level. DMM FX officially states that "depending on market conditions, a stop-loss order may be executed at a level significantly below the margin maintenance ratio of 50%."
- Overseas forex brokers have stop-loss levels ranging from 0% to 50%, and these vary depending on the account type, even within the same broker.FXGT's OPTIMUS account has a 0% stop-loss, while STANDARD, MINI, PRO, and CryptoX accounts have a 20% stop-loss, andECN ZERO has a 40%.Axi's MT4/MT5 accounts have a 20% stop-loss, while their proprietary platform accounts have a 50% stop-loss.IS6FX's Pro Zero account has a 10% stop-loss, while their Zero account has a 50% stop-loss,AXIORYZero account also has a 0% stop-loss.
- Margin call levels vary widely, from 20% to 100%, so the claim that "50% to 70% is common" is inaccurate. Moreover,there is no guarantee that a notification will even be received.Axiexplicitly states in its official help section that "we do not guarantee that a margin call will be received or that there will be enough time to add funds to avoid losses."
- The margin maintenance ratio is calculated as "Effective Margin ÷ Required Margin × 100".Exness's terms of service also define it as "Margin Level = (Equity / Necessary Margin) x 100%".In Japan, the calculation formula may differ; DMM FX uses "(Net Asset Value - Order Margin) ÷ Position Required Margin × 100", subtracting the value of unexecuted orders.
- Domestic FX brokers typically offer margin calls ranging from 50% to 100%, with the requirement to pay additional margin (the minimum payout). Examples include Minna no FX (100%), Gaitame.com (100% default, changeable between 100% and 50%), GMO Click Securities and DMM FX (50%), and Rakuten Securities (50% default with a course selection system). Overseas FX brokers offer zero-cut protection, but the margin levels are lower, resulting in a shorter margin before a stop-loss is triggered.
*This article was created by the MoneyCharger editorial teamtheir content creation policy. The stop-loss levels, margin call levels, and calculation formulas for each company were verified on September 16, 2026, using the original text (including English versions) of the official websites, official FAQs, and terms of service (source URLs are indicated in the table in the text). Stop-loss levels may be changed at the discretion of the broker and may also differ depending on the account type and platform. Always check the actual conditions in your own account and with the latest information displayed by each company. Overseas FX brokers are not registered with the Japanese Financial Services Agency,the Financial Services Agencyandthe Consumer Affairs Agencyhave issued warnings about trading with unregistered brokers. This article is for general informational purposes only and does not endorse any specific broker or trading method.
If you are new to overseas forex trading,our complete guide for overseas forex trading beginners.
What is a stop-loss order? | Differences from margin calls and zero-cut orders
A stop-loss order is a mechanism that automatically closes open positions when the margin maintenance ratio falls below a level set by the broker . It is designed to protect your account from losses exceeding your deposited funds . In overseas forex trading, there are other mechanisms called "margin call" and "zero cut" that precede and after this, and these three have completely different roles. Confusing them can lead to misunderstandings such as "I thought everything was okay because I received a warning" or "I thought my losses would be limited because of the zero cut."
| step | What will happen? | Examples of levels (confirmed September 2026) |
|---|---|---|
| ① Margin Call | You will only receive a warning; no payment will be processed. You will be notified via email or a message on the platform. | 20% to(list of 10 companies). |
| ② Stop-loss | Your positions will be forcibly closed. The order of closing varies depending on the broker. | Overseas brokers account for 0-50% of the total (XM, TitanFX,BigBoss, etc. account for 20%) / Domestic brokers account for 50-100% (GMO, DMM account for 50%, Minna no FX account for 100%) |
| ③ Zero cut | If your balance goes negative due to a sudden change, the broker will reset it to zero . This is a system not found in domestic FX trading. | It's not necessarily automatic or immediate (TitanFX explicitly states "reimbursement will be made on the next business day or later") |
① is a warning, ② is a forced settlement, and ③ is a post-loss settlement; their roles are completely separate. Settlement never occurs with ①, and even if ② is activated, it only confirms the loss. ③ is only invoked when the price goes into negative territory. Let's look at them in order.
A margin call is a "warning," not a payment
A margin call is a notification that your margin maintenance ratio is falling. At this point, your positions are not closed, and you have the option to either deposit more money or reduce your positions.The required margin level varies greatly from broker to broker, ranging from 100% to 20%, so it's not possible to generalize and say that "50-70% is common.
It's important to note thatthere's no guarantee you'll receive this notification.Axiexplicitly states the following in its official help documentation:
Axidoes not guarantee that a margin call will be received or that there will be sufficient time to add funds to avoid losses
Source:Axi official help page, "What is a margin call?"(Accessed September 16, 2026)
to check the required margin requirements and maintain sufficient free capital to respond to potential market reversalsAxialso states that "it is the client's responsibility, notrelying on margin calls for money managementis risky.
A stop-loss order does not guarantee that the order will be executed at that level
A stop-loss order does not guarantee that the position will be closed at that price level.While it is a mechanism to stop losses from escalating, it doesnot promise that the position will be closed at the price at which the margin maintenance ratio reaches a certain percentage. This is the most important point I want to convey in this article. When the market jumps, the order will be executed at a price significantly below the target level. This is clearly stated on the official websites of domestic brokers.
The above diagram is just an example. Depending on market conditions, a stop-loss order may be executed at a level significantly below a margin maintenance ratio of 50%
Source:DMM FX Official "What is a stop-loss?"(Accessed September 16, 2026)
In other words , a stop-loss order is not a line where losses stop, but rather a line where settlement processing begins if the price falls below it . This difference leads to situations where stop-loss orders fail to be executed in time, as will be discussed later
Zero cut is a system unique to overseas forex trading
Zero-cut is a system where, if a stop-loss order is not executed in time and the balance goes negative, the broker will reset the negative amount to zero. Domestic FX does not have this system (because the Financial Instruments and Exchange Act prohibits compensation for losses). Overseas FX is advertised as "no margin calls" because of this mechanism, but the application conditions are stipulated in the terms and conditions of each broker, and it may not be applied if it is deemed to be an abuse. For more details, we compare the terms and conditions of 10 overseas FX brokers regarding no margin calls and zero-cut
Stop-loss and margin call levels for the top 10 brokers [by account type, with sources]
The stop-loss level is the margin maintenance ratio at which a broker will initiate forced liquidation, and is sometimes called the stop-loss rate . The following is based on the original text of the official website, official FAQ, and terms of service, reviewed on September 16, 2026. It cannot be written as "one number per broker ." Even within the same broker, the level changes depending on the account type and platform, so it is listed separately where applicable.
| Contractor | Stop-loss level | Margin call level | Differences by account type | Source (verified September 16, 2026) |
|---|---|---|---|---|
 AXIORY | 20%／Zero Account 0% | 50%／Zero Account 30% | Yes (0-20%). Zero accounts have a 0% stop-loss and a 30% margin call. Max accounts only have a note stating that "the levels are different," and the figures are not confirmed. | Official "Zero Cut and Stop-Loss"/Official "Zero Account" |
 XMTrading | 20% | Unable to confirm official documentation | None. Standard, Micro, KIWAMI Extreme, and Zero all state 20%. | Official "Account Types" |
 FXGT | OPTIMUS 0%/ STANDARD・MINI・PRO・CryptoX 20%/ECN ZERO 40% | 50%／ECN ZERO 70% | Yes (0-40%). This was the largest difference among the 10 companies. | Official "Account Types" |
 HFM | 0%(1 type) /20%(5 other types) | 20%(1 type) /50%(5 other types) | Yes. Six different account types are listed on the account comparison page. | Official "Account Type Comparison" |
 BigBoss | 20% | 50% | Please specify the details of the Standard Account and Pro Spread Account | Official FAQ |
 ThreeTrader | 20% | 80%(Notification by email) | The official FAQ does not specify account types | Official FAQ |
 IS6FX | 20%/ProZero account 10%/Zero account 50% | Unable to confirm official documentation | Yes (10-50%). The ProZero account has the lowest rate at 10%, while the Zero account is 50%. | Official "Account Types" |
 TitanFX | 20% | 90% | No specific information is provided for each account type (it can be interpreted as being common to all accounts) | Official Help: "About the Zero Cut System" |
 Axi | MT4/MT5 20%/Axiproprietary platform 50% | 100% | Yes (by platform) | Official Help: "Margin Stopout" |
 Exness | This could not be confirmed from Japan. The terms and conditions do not specify a percentage level for each account type. | Unable to confirm | — | Client Agreement (Version: 24 July 2026 / 038 - English) |
*Although our editorial department operates a cashback service, we only select listed brokers based on whether we can verify their stop-loss levels using official primary information. Whether or not cashback can be received through MoneyChat is not included in the selection criteria. To disclose the facts, as of September 2026, 9 of the above 10 companies are eligible for MoneyChat's cashback program, with XMTrading being the only one not (according to our site's list of supported brokers). If you would like to compare this with the levels of domestic FX, there is a table of 5 domestic companies in the section on differences with domestic FX
"Remembering by the broker name" is a mistake |FXGThas rates ranging from 0% to 40%
The biggest difference isFXGT. Within the same broker, the OPTIMUS account has a margin of 0%,while the ECN ZERO account has a margin of 40%, a difference of more than four times. 0% means you can hold the position until you've almost used up all your funds, while 40% means it will be closed when the margin falls below 40% of the required amount. This means thateven with the same lot size, the margin you can withstand is completely different.
Other Axihave different rates depending on the platform also (MT4/MT5 is 20%,Axiproprietary platform is 50%). 's IS6FXhas a 10% rate for Pro Zero accounts and a 50% rate for Zero accounts , HFMone of the six HFM types is 0% and AXIORY's Zero account has a 0% stop-loss and a 30% margin call rate . When opening an account, instead of memorizing that "this broker is 20%", it's more reliable to check the rates for the account type you opened on the member page .
Margin calls range from 20% to 100% | Companies that issue warnings early have more time
While stop-loss levels are concentrated at 20%, margin call levels vary considerably from broker to broker . Axi100% issues the earliest warning at , while HFM20% for some account types issues the latest at .HFM's 20% is the same value as the stop-loss level, Since the warning and forced liquidation occur almost simultaneously . See the table above for the figures for each company.
The sooner a broker issues a warning, the more time you have to consider whether to deposit funds or reduce your position. Applying this to the aforementioned calculation , in the example of 1 lot of USD/JPY with 500x leverage and a deposit of approximately $625.00, Axi's 100% would issue a warning after a 70-pip adverse movement, whileHFM's 20% would not trigger any action until 94 pips . However, there is no guarantee that you will receive a notification , so the speed of the warning cannot be used as a basis for safety.
Exnesswas the only company whose official standards could not be confirmed from Japan
the only company whose data we were unable to confirm during this investigationExness.Both the terms and conditions page and the official help section on their website require login from Japanese internet connections, and the content is not displayed. The relevant page is not saved on the Wayback Machine, and we were unable to retrieve it using a real browser.
The publicly available terms of service include the calculation formula (Margin Level = Equity / Necessary Margin × 100%) and the statement that forced liquidation is possible in the event of a Stop Out. However,the Stop Out level (%) for each account type is not specified in the terms of service(the 100% mentioned in the terms of service is a measure of situations in which the company can forcibly liquidate at its discretion). The numerical value of the level is located on the account type page, but it is not visible. The fact thatyou cannot compare trading conditions before opening an account is itself a factor to consider when choosing an account. If you decide to use the service, be sure to check the numerical value for your account type on the member page after opening an account.
Why are the figures different from other articles? | Where do the "0%" and "10%" figures come from?
The stop-loss levels reported by different media outlets vary. Our investigation confirmed that this is largely due to the fact that many sources only look at specific account types and present them as "the level for that particular broker."
| Frequently seen descriptions | actual |
|---|---|
| FXGT 0% | 0% for OPTIMUS accounts only. 20% for STANDARD and other accounts, and 40% for ECN ZERO accounts. |
| IS6FX 10% | Only the ProZero account gets 10%. Others get 20%, andthe Zero account gets 50%. |
| AXIORY 0% | Zero accounts only: 0%(margin call is 30%). Standard account types: 20% |
| Rakuten Securities 20% | The initial setting is 50%. 20% is the minimum setting for the 5x, 2x, and 1x leverage courses. |
All figures on this page are taken from the original source pages listed in the table above.Since the levels are subject to change at the discretion of the broker, any changes made after the verification date will not be reflected. Please check the latest display in your account before trading.
Calculating the margin maintenance ratio and working backward to determine at what price your position will be closed
Even if you know the stop-loss level,if you don't know what yen that corresponds to in your position. Here, we'll confirm the calculation formula using the official definition and then work backward to determine "how many cents of adverse movement would trigger a stop-loss if you held 1 lot of USD/JPY."
The calculation formula is "Effective margin ÷ Required margin × 100"
The margin maintenance ratio is calculated using the following formula.Exness's terms of service also use the same definition: "Margin Level = (Equity / Necessary Margin) x 100%"
Margin maintenance ratio (%) = Effective margin ÷ Required margin × 100
| term | contents | Points that are easy to get wrong |
|---|---|---|
| Effective margin (Equity) | Balance + unrealized gains/losses(including any bonuses that act as a buffer, if any) | Calculating using the "balance" will result in a higher figure than the actual amount. The effective margin decreases by the amount of unrealized losses. |
| Required margin | The amount of money tied up to hold that position. (BigBoss's official method Calculated using : Calculation rate × trading currency unit × trading quantity ÷ leverage ) | The higher the leverage, the smaller the margin requirement becomes.brokers where leverage decreases in stages depending on the account balance, the required margin increases as the balance increases. |
Whether or not a bonus can be included in your effective margin depends on the presence or absence of a cushion function (a specification that determines whether or not the bonus can be used as margin) , and this varies depending on the broker and the campaign. In accounts where bonuses are not included, the distance to a stop-loss will not increase even if you have a bonus. For more details, please refer to the section on cushion functions of overseas FX bonuses
Note thatdomestic brokers may use slightly different calculation formulas. DMM FX officially states that "the margin maintenance ratio is(net asset value - order margin) ÷ required position margin × 100," which subtracts the margin used for unexecuted orders. Evenit's the same "margin maintenance ratio," the details differ, so be sure to check the calculation formula when switching brokers.
Calculating backwards with 1 lot of USD/JPY | Where would you be stopped out if you bought at approximately $0.94?
In short, it's approximately $0.93.Under the conditions of 1 dollar = approximately $0.94, buying 1 lot (100,000 units of currency), 500x leverage, deposit of approximately $625.00, and having only this one position, a94-pip adverse movementwill trigger a forced liquidation. The procedure is as follows (5 steps).
- Required margin= approx. $0.94 × 100,000 units of currency ÷ 500x leverage = approx. $187.50
- The effective margin required to reach the 20% stop-loss levelis approximately $187.50 × 20% = approximately $37.50
- Tolerable unrealized loss= Deposit approx. $625.00 - approx. $37.50 = approx. $587.50
- one lotapproximately $6.25 for every 1 sen fluctuation, approximately $587.50 ÷ approximately $6.25 = 94 sen
- The price at which a stop-loss order will be triggered= approx. $0.94 - approx. $0.01 = approx. $0.93
If we change only the level under the same conditions, the results are as follows.The price at which a margin call will occur can also be determined using the same procedure, so it is safer to have this information as a number from the beginning rather than waiting until a warning is issued before taking action.
| level | Required effective margin | Tolerable unrealized losses | The range of movement in reverse | Price to be executed | Relevant example |
|---|---|---|---|---|---|
| 100% | approx. $187.50 | approx. $437.50 | 70 sen | approx. $0.93 | Aximargin call / Minna no FX stop cut |
| 90% | approx. $168.75 | approx. $456.25 | 73 sen | approx. $0.93 | TitanFX margin call |
| 80% | approx. $150.00 | approx. $475.00 | 76 sen | approx. $0.93 | ThreeTrader's Margin Call |
| 50% | approx. $93.75 | approx. $531.25 | 85 sen | approx. $0.93 | AXIORY,FXGT, andBigBossmargin calls /Axi's proprietary PF stop-loss |
| 40% | approx. $75.00 | approx. $550.00 | 88 sen | approx. $0.93 | FXGT ECN ZERO account stop-loss |
| 20% | approx. $37.50 | approx. $587.50 | 94 sen | approx. $0.93 | Most common stop-loss level |
| 10% | approx. $18.75 | approx. $606.25 | 97 sen | approx. $0.93 | IS6FX Pro Zero Account |
| 0% | approx. $0.00 | approx. $625.00 | 100 sen (approximately $0.01) | approx. $0.93 | FXGT OPTIMUS Account -HFMHigh-Frequency Mobile) - 1 type |
*The required margin is calculated assuming it is fixed at the rate at the time the position is opened.For brokers that recalculate the required margin using the current rate, the required margin will change with price fluctuations, so the execution price will deviate slightly from the above figure. Also, if you hold multiple positions, the required margin and profit/loss will be calculated together.
The higher the leverage, the longer the distance to a stop-loss order
Contrary to intuition,for the same lot size and deposit amount, higher leverage provides more leeway before a stop-loss is triggered. This is because leverage determines the required margin, so the higher the leverage, the smaller the amount tied up, and the more funds you can allocate to unrealized losses.
| Leverage | Required margin | Unrealized losses that can be tolerated up to 20% | The range of movement in reverse |
|---|---|---|---|
| 200 times | approx. $468.75 | approx. $531.25 | 85 sen |
| 500 times | approx. $187.50 | approx. $587.50 | 94 sen |
| 1,000 times | approx. $93.75 | approx. $606.25 | 97 sen |
However, the rate of increase decreases rapidly . Increasing leverage from 200x to 500x widens the price from 85 sen to 94 sen, a difference of 9 sen, but increasing it from 500x to 1,000x only changes the price from 94 sen to 97 sen, a difference of 3 sen. You should understand that there is an upper limit to the margin you can gain by increasing leverage
And this is assuming you don't change the lot size . High leverage also means you can trade larger lots with the same amount of capital, but if you actually increase the lot size, the required margin will skyrocket, and the gap will actually shrink. The danger is not the leverage number itself, but the lot size . You can check the leverage limits and balance restrictions for each broker in overseas FX leverage comparisons
"Execution is not guaranteed to occur at the stop-loss level" | What do the terms and conditions promise?
If you understand the stop-loss level as "the price at which your trade will be closed," you will inevitably be disappointed during sudden market changes.Each company's terms and conditions stipulate that the broker has the right to "close" the trade when the level is reached, not a promise of the price at which it will be closed. Here, we will examine how this is actually written in the terms and conditions.
① The terms and conditions stipulate the "right to enforce settlement."
Exness's Terms of Service define the following in the event that a user reaches a Stop Out level:
2.5 Stop Out (a) The Company has the right to forcibly close the Client's positions if the Stop Out level of margin is reached...
Source:Exness General Business Terms (Version: 12 August 2025/021 - Original text in English. Accessed September 16, 2026)
Note that"Stop Out"is the English term for stop-loss order. What's important to note is that it "has the right to" and not "will close at that price."The broker's obligation is to attempt to execute the order, not to guarantee the resulting price—this is a common structure in both overseas and domestic forex trading.
② There is no obligation to issue a warning or to grant an extension
Axi's official help section clearly states that the responsibility for managing margin funds lies with the customer, not the broker
It is the client's responsibility, notAxi, to check the required margin requirements and maintain sufficient free capital to cope with potential market reversals
Source:Axi official help page, "What is a margin call?"(Accessed September 16, 2026)
The same help section states that they do not guarantee receiving margin calls or having enough time to address them. Therefore, the claim "we couldn't respond because we didn't receive a notification"is not valid under the terms of service.
③ The company itself states that negative balances can occur
Even pages that advertise zero-cut policiesdo not hide the fact that negative balances can occur. TitanFX's explanation is as follows:
Normally, a margin call is triggered when the margin maintenance ratio falls below 90%, and a forced stop-loss is triggered at 20%, preventing the account from going into negative territory. However, due to rapid market fluctuations, the account balance may go into negative territory
Source:TitanFX Official Help "About the Zero Cut System"(Accessed September 16, 2026)
The phrases "a system that does not incur losses" and "there may be losses" appear side by side in the same sentence. While it's designed not to happen, it can happen in reality —this is the most important point to remember from this article. Note that the timing of compensation and how abuse is handled differ from broker to broker . The terms of each company are compared based on their no-margin-call/zero-cut policies for overseas forex trading
④ The order and scope of payment are also determined by the vendor
When you hold multiple positions,you cannot choose which one will be closed. There are two main methods for handling this.
| method | The relevant company and the original text | things that happen |
|---|---|---|
| Close the positions with the largest losses first | AXIORY "When the margin maintenance ratio falls below 20%, stop-loss (forced liquidation) will be triggered, starting with the positions with the largest losses " (MT4/MT5. cTrader uses "Smart Stop-Out" to partially close positions to maintain a 20% margin maintenance ratio ) / Axi : "Our system will close the positions with the largest losses to exceed the required level " / Exness also stipulates in Article 2.5(b) of its terms and conditions that forced liquidation will start with the position with the largest unrealized loss. | Settlements will stop once the price level recovers.Positions with the greatest potential for recovery will be closed first |
| Close all positions at once | DMM FX: "When the margin maintenance ratio falls below 50%, the stop-loss rule is triggered, andall open positionsare forcibly closed." (Domestic) | Profitable positions will also be closed at the same time |
The sources areAXIORY's official "Zero Cut and Stop-Loss" page ,Axi's official help page, and DMM FX's official "What is Stop-Loss?" page (all confirmed on September 16, 2026). If you hold multiple positions, it is definitely worth checking which method your broker uses . If you do not want to leave the order of closing positions to your broker, you have no choice but to partially close positions yourself
⑤ The level itself can also be changed by the service provider
Furthermore, the stop-loss level itself is not a fixed promise.Exness's terms of service stipulate that the company may change the required margin and stop-out level at its discretion and then forcibly close positions.
Increase the Stop Out level or change the required Margin Level of a Trading Account and forcibly close any Client's open positions...
Source:Exness Client Agreement (Version: 24 July 2026 / 038 - Original text in English. Accessed September 16, 2026)
Similar regulations exist domestically. Gaitame.com states that even if a customer lowers their stop-loss level to 50%, ifthe effective ratio falls below 100% in the hour immediately preceding the end of trading each business day (stop-loss judgment time), the order will be forcibly executed regardless of the setting. The company explains that this is to comply with the margin requirement regulation (4%) for individual FX traders. The idea that"it's okay because I lowered the level myself" is not valid.
Up to this point,how the regulations are written. Now, let's look at some situations where the system might not stop as intended.
Situations where stop-loss orders cannot be executed in time | Gaps, liquidity, and judgment intervals
The reason stop-loss orders don't work as expected isn't due to a malfunction in the brokerage, but because thesystem is designed to cause this in certain situations. From here on, we're not talking about the terms and conditions, but rather about the market itself. There are mainly three situations where this occurs, and all of themcan be categorized as either "prices are not continuous" or "the judgments are not continuous."のどちらかに整理できます。
① Gap at the start of the week | Nothing happens while the market is closed
Since trading is suspended on weekends,stop-loss orders and margin calls will not be triggered. If news breaks during this time, Monday's opening price will be significantly lower than Friday's closing price. This "gap" can be breached regardless of any price levels set. Gaitame.com explains this scenario with numerical examples on its official website.
Due to sharp market fluctuations at the open on Monday, if the price falls significantly below the stop-loss level and a stop-loss is executed, there is a possibility that a deficit may occur in your account. In that case, you will need to deposit the deficit amount by 3:00 PM on the second business day following the day the deficit occurred
Source:Gaitame.com Official "Stop-Loss Rules"(Confirmed September 16, 2026)
The example given on the page involves holding 60,000 units (60 lots) of Turkish Lira against the Japanese Yen, with total assets of approximately $625.00 and an effective margin ratio of 238%. While the numbers alone suggest a comfortable level, the explanation states that a single gap over the weekend resulted in a loss of approximately $759.00, leaving a deficit of approximately $134.00 . This illustrates that having a comfortable margin ratio does not guarantee protection against gaps in the market .
| Official example from Gaitame.com | |
|---|---|
| Holding | Buy 60,000 units (60 lots) of Turkish Lira against the Japanese Yen |
| Total Assets | approx. $625.00 |
| The effective ratio before the gap opened (the company's term for the margin maintenance ratio) | 238%(Significantly above the stop-loss level) |
| Losses incurred | approx. $759.00 |
| result | A deficit of approximately $134.00is required (payment must be received by 3 PM on the second business day after next). |
With overseas forex trading, this deficit may be covered by a zero-cut system. However, zero-cut is a system based on the broker's terms and conditions, and will not be applied if it is deemed to be an abuse . For more details, please see the comparison of the terms and conditions for no margin calls and zero-cut in overseas forex trading
② If liquidity disappears, the settlement order itself will not be executed
A stop-loss order is a process that "forces a settlement." Even if an order is placed,it will not be executed if there are no buyers or sellers. Minna no FX clearly states this point on its official website.
While a stop-loss order is executed when the margin maintenance ratio of an FX account falls below 100%, this does not guarantee that the order will be executed at a price that brings the margin maintenance ratio to 100% or that the amount of loss will be reduced. Due to factors such as decreased liquidity, there is a risk that the settlement order for the stop-loss order will not be executed, leading to further losses, and it is possible that losses may exceed the deposited margin
Source:Minna no FX Official "About Stop-Loss"(Accessed September 16, 2026)
Liquidity tendsimmediately after the release of important economic indicators, on days when major markets are closed, during the year-end and New Year holidays, and in the early morning hours in Japan. During times when spreads are several times wider than normal, unrealized losses increase more rapidly even with the same price movement, sothe widening of the spread itself pushes down the margin maintenance ratio.
③ The judgments are not consecutive | There are intervals between evaluations
The margin maintenance ratio is not always determined in real time. Rakuten Securities explains this on its official website
Because the net asset valuation used to determine whether to cut losses is performed is done at regular intervals, there is a time lag before the loss is executed compared to real-time market valuation. This can occur when trading rates fluctuate rapidly, for example…
Source:Rakuten Securities Official "Stop Loss"(Confirmed September 16, 2026)
The price continues to fluctuate during both the judgment interval and the time it takes for an order to reach the market and be executed. This is why settlement is not made at the "price at the moment it falls below 20%"
In all three of these situations, there is no other option but to reduce your position size . Specific steps for dealing with these situations are summarized in the practical guide to avoiding stop-loss orders
Differences from domestic FX | High standards, but different risk profiles
The difference between domestic and international stop-loss systems lies more in the structure of the system than in the numerical level itself. While it's sometimes said that "domestic FX is safer because the stop-loss level is high," this isn't entirely accurate. Domestic systems have higher levels but also require margin calls (the obligation to pay any deficit), while overseas systems have lower levels but offer zero-cut protection . The protection mechanisms differ, but neither is inherently safer than the other.
| Comparison items | Domestic FX | Overseas FX |
|---|---|---|
| Stop-loss level | 50〜100%(Minna no FX 100%, Gaitame.com initial settings 100%, GMO Click Securities/DMM FX 50%) | 0〜50%(20% is the most common percentage. Some brokers have percentages ranging from 0% to 40% depending on the account type.) |
| Grace period before stop-loss | It's short. With brokers that execute trades at a 100% maintenance margin, settlement begins as soon as the required margin falls below a certain level. | It's long. Because you can hold up to a 20% maintenance margin, you can withstand a wider range of price fluctuations even with the same deposit amount. |
| Negative balance | You will still have an obligation to pay additional margin(you will be charged for losses exceeding your initial deposit). | The company will compensate you with a zero-cut(however, this may not apply if it is determined that the terms and conditions have been abused). |
| Prior warning | There are alert and margin call notification systems in place (GMO Click Securities 100%, DMM FX 70%) | There are margin calls, butthe levels vary wildly from 20% to 100%, and there's no guarantee they'll be met. |
Stop-loss levels for 5 domestic companies (as of September 16, 2026)
Five domestic companies offer rates between 50% and 100%, and two of them allow customers to change their own rates.Unlike overseas forex brokers where rates are divided by account type, a unique feature of domestic brokers is that customers can set their own rates.
| Contractor | Stop-loss level | Prior warning | source |
|---|---|---|---|
| GMO Click Securities | Margin maintenance ratio of 50%(when the total market value falls below 2% of the transaction amount) | Stop-loss alert 100%(4% of the transaction amount) | Official "Trading Rules" |
| DMM FX | All positions will be forcibly closed if the margin maintenance ratio falls below 50%. | Alert email sent at 70%success rate (once per business day) | Official "What is a stop-loss?" |
| Minna no FX | Margin maintenance ratio below 100%, constant judgment, all positions closed at market price. | Not specified (No stop-loss fees) | Official "About Stop-Loss Orders" |
| Gaitame.com | The stop-loss level can be set in 10% increments between 100% and 50%, with the default setting being 100%. In addition, regardless of the setting, a stop-loss will be executed if the effective ratio falls below 100% during the hour immediately preceding the end of trading each business day (stop-loss judgment time). | Alert email sent once per business day when the effectiveness rate reaches 200% | Official "Stop-Loss Cut" |
| Rakuten Securities | Course selection system. The Standard 25x courseallows you to set the leverage ratio in 5% increments from 50% to 95% (default value is 50%), the 10x leverage course allows 40% to 95%, and the 5x, 2x, and 1x courses allow 20% to 95%. | Margin calls are issued when the maintenance margin falls below 100%(Standard 25x course and corporate accounts only, until 6 PM the following day). | Official "Stop-Loss Cut" |
Some brokers in Japanallow you to choose your own stop-loss level. Rakuten Securities sets the "Standard 25x course, stop-loss level 50%" when you open an account, and you can change this level within the range of 50-95%. Raising the level will stop the trade earlier, but it will also make the trade more susceptible to being closed by temporary adverse price movements.
Even domestically, it's not as if the situation will "stay at the expected level."
While higher levels may seem safer, there is a delay in the timing of the assessment itself, and the gap at the start of the week can jump over the entire level. Rakuten Securities officially explains that there is a time lag because net asset valuations are performed at regular intervals, and Gaitame.com has published an example where a deficit occurred due to a weekend gap even when the effective ratio was 238%. For more details, see the section on situations where stop-loss orders are not executed in time
In other words, "a high level" and "staying at that level" are two different things, and this is true both domestically and internationally. Even if you choose a domestic FX broker with a 100% margin requirement, in the event of a sudden change, your position will be settled at a price significantly below 100%, and you will still be required to pay the deficit as a margin call . This is the difference from when you incur a negative balance in overseas FX. The handling of margin calls in overseas FX is explained in detail in the sections on overseas FX no margin call/zero cut and cases where your balance actually goes negative in overseas FX where you incur debt . Note that this article only covers the differences related to stop-loss orders. Differences in general systems such as leverage regulations, trust protection, and taxes are summarized in the section on differences between overseas FX and domestic FX
Practical tips for avoiding stop-loss orders: Focus on determining lot size rather than worrying about price levels
As we've seen, the stop-loss level is determined by the broker, and the only things you can adjust are the lot size, deposit amount, and holding time . Choosing a broker with a lower stop-loss level can be effective, but reducing the lot size by one level has a far greater effect
① Reverse the order of calculation (don't input the values first, then calculate)
In many cases, people only check the margin ratio after opening a position. If you reverse the order andfirst decide on the amount you are willing to lose in a single trade, andthen determine the lot size from there, the worry of being stopped out almost disappears.
- Determine your acceptable loss limit(e.g., up to approximately $125.00 in one transaction out of a total deposit of approximately $625.00).
- Determine your stop-loss level(e.g., 50 sen).
- Lot size = Allowable loss amount ÷ (Stop-loss range × Profit/loss per sen per lot)= approx. $125.00 ÷ (50 sen × approx. $6.25) =0.4 lots(40,000 units of currency)
*1 lot (100,000 units of currency) is approximately $6.25 per sen, and 10,000 units of currency (0.1 lot) is approximately $0.63. Checking the calculations, if 0.4 lots = 40,000 units of currency move against you by 50 sen, the loss is approximately $0.00 x 40,000 units = approximately $125.00, which matches the predetermined acceptable loss amount. Positions opened using this procedure willhave their stop-loss triggered before the margin call, so they will never reach the point of forced liquidation. The margin call mechanism only comes into play when a stop-loss is not set.
② Make partial payments yourself (don't let the vendor choose)
When your margin ratio starts to fall, you have two options: "deposit more money" or "reduce your positions." .AXIORYandAxiIf you choose to reduce your positions, it's more advantageous to make the decision yourself close positions in order of the largest losses , so if you leave them as they are, the position with the largest unrealized loss (the one with the greatest potential for recovery) will be closed first. With brokers like DMM FX , which close all positions at once , even profitable positions will be closed simultaneously.
If you close positions yourself,closing positions with large margin requirements (i.e., large lot sizes) will result in a greater recovery of your margin ratio. This is because the denominator, the required margin, decreases directly.
③ Be aware that additional deposits "result in a small recovery."
Deposits only increase the numerator (effective margin), sothe larger the required margin, the less effective they become. In the previous example (required margin approx. $187.50), to bring the maintenance margin back up from 20% to 100%, the effective margin would need to be increased from approx. $37.50 to approx. $187.50, meaninga deposit of approx. $150.00is required. If the required margin is approx. $937.50, thenapprox. $750.00would be needed to recover the same 80 points. Often, this amount is not enough to make a quick recovery in the midst of a sudden change, so deposits are a preventative measure, not a solution.
④ Do not rely on bonuses as margin
Bonuses are only included in effective marginif the account has a cushion function. In accounts where bonuses are not included, the distance to a stop-loss will not increase by more than approximately $0.01, regardless of the bonus balance. Even when bonuses are included,moving funds between accounts will cause the bonus to be proportionally reduced or forfeited. This is why accidents where the margin maintenance ratio drops immediately after a transfer can occur.
⑤ Reduce the lot size when the trade spans across weeks
As seen with the gap at the start of the week mentioned earlier , gaps open when information changes while the market is closed . Since stop-loss and margin calls do not activate on weekends, positions opened at Friday's closing price remain vulnerable until Monday. Make it a habit to either close your positions on Friday if you don't need to carry them over into the weekend, or reduce your lot size compared to normal if you do need to hold them overnight.
It's worth noting that while short-term trading is often cited as a traditional "stop-loss prevention" strategy, shortening the holding time and avoiding stop-losses are two different things. Short-term trading tends to involve larger lot sizes, which can actually lower the margin maintenance ratio. Furthermore, some brokers have restrictions on trading methods themselves . You can find out what each broker allows and compare their terms and conditions for scalping in overseas forex trading
Frequently Asked Questions about Stop-Loss in Overseas Forex Trading
What percentage is the typical stop-loss level for overseas forex trading?
20% is the most common percentage, but overall it ranges from 0% to 50% . Of the 10 companies we checked, XMTrading, TitanFX,BigBoss,ThreeTrader, andAXIORY. In addition,HFM,FXGT,IS6FX, andAxialso had 20% for their main account types. However, all listed 20% as a single percentage even within the same broker, this varies depending on the account type .FXGT, OPTIMUS accounts are 0%, ECN ZERO accounts are 40%, and others are 20%.Axi, MT4/MT5 is 20%, and their proprietary platform is 50%.IS6FX, Pro Zero accounts are 10%, Zero accounts are 50%, andAXIORYZero accounts are 0%. Please check the percentage for the account type you are using. For For For
How is the margin maintenance ratio calculated?
Effective Margin ÷ Required Margin × 100.Effective margin is "Balance + Unrealized Profit/Loss," and if there is a bonus with a cushion function, that is also included.as calculating with the balance will result in a higher number than the actual amount. Note that domestic brokers may have different formulas; DMM FX uses "(Net Asset Value - Order Margin) ÷ Position Required Margin × 100," which subtracts the amount held by unexecuted orders.
Is there a way to know the price at which I will be stopped out?
You can work backwards.The four steps are: ① Calculate the required margin (rate × currency volume ÷ leverage) ② Multiply by the stop-loss level to find the required effective margin ③ The difference between the deposit and the effective marginis the unrealized loss you can tolerate ④ Divide by the profit/loss per sen. If 1 dollar is approximately $0.94, 1 lot is 500x leverage, and the deposit is approximately $625.00, then the required margin is approximately $187.50, the stop-loss level is approximately $37.50, the unrealized loss you can tolerate is approximately $587.50, and since 1 lot moves approximately $6.25 per sen, that's 94 sen. So,approximately $0.93is a good guideline.
Will I definitely receive a margin call?
There is no guarantee that you will receive.Axiexplicitly states in its official help section that "Axidoes not guarantee that a margin call will be received or that you will have enough time to add funds to avoid losses," and that managing your margin is the customer's responsibility.The margin levels also vary from 20% to 100% depending on the broker(Axi 100% / TitanFX 90% /FXGTECN ZERO account 70%ThreeTrader 80% /AXIORY,FXGT,BigBoss 50% /AXIORYZero account 30%), so do not rely on notifications for fund management.
Which is better: a broker with a low stop-loss rate (stop-loss level) or one with a high stop-loss rate?
There are pros and cons to both,and it's impossible to recommend one over the other.The lower the stop-loss rate (e.g., 20%), the wider the range of price fluctuations you can withstand with the same deposit amount. In the previous example, a 100% level would have allowed you to withstand down to 70 sen, while a 20% level would have allowed you to withstand down to 94 sen. On the other hand, the lower the level, the less money you have remaining when settlement begins,making it easier to fall into a negative balance during sudden changes. In overseas forex trading, the zero-cut system is designed to absorb this risk.
Why is my balance negative even though I was stopped out?
This is because stop-loss orders do not guarantee that the order will be executed at that price level . During weekend gaps, prices can jump while the market is closed, preventing stop-loss orders from being triggered. In situations of low liquidity, settlement orders themselves may not be executed. There is also a certain interval for the judgment. DMM FX officially states that, depending on market conditions, stop-loss orders may be executed at levels significantly below the 50% margin maintenance ratio. The terms and conditions do not necessarily guarantee that the order will be executed at the stop-loss level , and specific situations where stop-loss orders may not be executed in time are discussed in detail. Whether a negative balance actually results in a payment obligation is explained in the section on cases of incurring debt with overseas FX
Which type of stop-loss order is safer: domestic or overseas forex trading?
The way you are protected is different, but neither is unilaterally safer . In Japan, the level is high (50-100%) and stops quickly, but if it goes into the negative, you will still have to pay a margin call. Overseas, the level is low (0-50%) and there is a wider margin to withstand, but it is also easier to go into the negative, and zero-cut compensates for that. Even in Japan, it doesn't always stop exactly at the level; Gaitame.com has published an example where a gap of approximately $134.00 occurred due to a weekend gap from an effective ratio of 238%
What percentage is Exness's stop-loss level?
As of September 16, 2026, we were unable to officially confirm this service from a Japanese network. Both the trading conditions page and the official help section on the official website require login, and there are no archived versions. The terms of service define the calculation formula as "Margin Level = (Equity / Necessary Margin) x 100%" and state that forced liquidation is possible when the Stop Out level is reached, butthe Stop Out level (%) for each account type is not specified in the terms. Furthermore, the terms include a clause stating that the company may raise the Stop Out level at its discretion. If you intend to use this service, please check the values for your account type on the member page after opening an account.
Summary | It's better to set a price for your own position than to memorize the levels
After reviewing official information from 10 companies, I learnedthat stop-loss levels vary from broker to broker and from account type to account, and there's no guaranteethat the price will stop at those levels. That's why, rather than memorizing the numbers for the stop-loss levels,to figure out in advance "how much the price will move before my position is closed.
After you finish reading, do these four things
- Check your account type's stop-loss level on your member page. It's determined by your account type, not the broker's name. Even within the same broker, it can range from 0% to 50%.
- Calculate the price at which your position will be closed at that level. Calculate the required margin, multiply it by the level, and divide the difference between that and the deposit amount by the profit/loss per sen. For example, with 1 lot of USD/JPY, 500x leverage, and a deposit of approximately $625.00, the result would be approximately $0.93.
- Place a stop-loss order before the calculated price. Since there is no guarantee that a stop-loss order will be executed at that price, it is more reliable to stop the trade yourself.
- If the trade spans into the next week, reduce the lot size. Stop-loss and margin calls do not activate on weekends, and gaps are jumped over entire price levels.
One last time:The difference in stop-loss levels is only about a few tens of cents in the amount you can withstand, and the effect of reducing your lot size by one levelis far greater. Looking at the levels when choosing a broker is correct, but it is not a substitute for money management.
Even with the same broker and the same transaction, receiving cashback effectively lowers the transaction cost, making it less likely for your margin to decrease. However, thisoffer is only valid for accounts opened through the designated link; you cannot register an existing account later.
Check the account opening procedure to lower transaction costs and prevent margin deductions, and to be eligible for cashback
