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  Margin close-out is the point at which a provider begins closing leveraged positions because the account no longer carries enough equity to support them. It is not the same as a trader’s stop-loss, and it does not wait for the market view to be proven wrong. The rule responds to account funding, not analysis. When trading a contract for differences , the trader deposits only part of the position’s total exposure. Profits and losses are still calculated from the full position size. A relatively modest price move can therefore reduce account equity much faster than an unleveraged holding of the same cash amount. Margin Level Connects Equity and Required Margin Providers commonly monitor a margin level calculated by comparing account equity with the margin required for open positions. Equity includes the cash balance plus unrealized profits and losses. As losing positions reduce equity, the percentage moves closer to the broker’s warning and close-out thresholds. The exact ...