Tickmill Leverage, Margin Call and Stop-Out Explained with Examples
Editorial check: October 2026 · Independent education · Trading terms vary by legal entity and country.
Leverage changes how much market exposure you can control with a deposit; it does not make price risk disappear. Traders who ask “How much margin does Tickmill require?” often need the answer to a different question: how much can the position lose before there is a margin warning or forced liquidation? Those are linked, but not interchangeable, calculations.
This tutorial walks through the definitions and simple numbers used in MT4/MT5. Tickmill’s published conditions and the protections available to you depend on the legal entity, instrument and client category. The figures are learning examples, not a live margin quotation or trading recommendation.
Four account numbers to understand first
Balance is the account figure before adding the floating profit or loss of open positions. Equity includes that floating result. Used margin is the amount of equity required by the platform to support open exposure. Free margin is the difference between equity and used margin, and can shrink even if you do not open a new trade.
Illustrative margin snapshot
Free margin in this example is $600. A loss changes equity and margin level, while the used margin may also vary with price and instrument specifications.
Margin level is usually expressed as a percentage: equity ÷ used margin × 100. This can make two accounts with the same balance behave differently when one has much larger open positions. Learn to monitor equity, not just the deposit or balance number.
What does 1:100 or 1:500 leverage actually change?
Consider a purely illustrative $100,000 notional position with no currency-conversion adjustments. At 1:100 leverage, the starting margin would be about $1,000. At 1:500, it would be about $200. Both positions still represent approximately the same $100,000 exposure; a one-percent adverse movement is roughly $1,000 of market P&L before transaction costs in this simplified model.
| Illustrative leverage | Margin on $100,000 notional | What does not change |
|---|---|---|
| 1:50 | $2,000 | Market exposure is still $100,000 |
| 1:100 | $1,000 | The same price move causes comparable P&L |
| 1:500 | $200 | Costs, gaps and losses remain possible |
Those numbers are not a suggestion to use higher leverage. The risk becomes particularly dangerous when lower required margin tempts you to increase the position size. Margin availability and sensible trade size are different decisions. Your actual account could have lower leverage caps based on entity, instrument and local rules.
Margin call versus stop-out
Tickmill’s general MT4/MT5 FAQ describes a margin call threshold at 100% and a stop-out level of 30% in its example. If a position uses $200 margin, equity falling to $200 makes margin level 100%. If equity subsequently reaches $60, the simplified margin level is 30%, at which the example describes automatic liquidation starting. Tickmill also notes that thresholds can depend on the entity and client classification.
Do not treat those example thresholds as identical across all products. Tickmill’s Islamic-account information displays a different stop-out specification in its account-conditions block. More importantly, liquidation is not an insurance policy: sharp price gaps, thin liquidity or volatility may result in worse realised outcomes than a trader expects from a threshold displayed on-screen.
Why a stop-loss is not the same as a margin rule
A stop-loss is your instruction to exit at or around a specified price when the market moves against you. A margin stop-out is a platform or broker response to insufficient equity supporting your exposure. Neither mechanism guarantees a precise exit price in all conditions, and the second may close positions you intended to hold longer.
A good risk calculation starts with how much account currency you are prepared to lose if your trade thesis is wrong. You can then work backwards through instrument pip value, stop distance and position size. The margin requirement is an additional constraint, not the beginning and end of your risk plan.
A pre-trade checklist that catches common mistakes
- What is the actual contract size, tick value and quote precision for this symbol?
- How much money would the proposed stop distance put at risk, including spread and possible slippage?
- What margin will this position consume at the leverage actually assigned to this account?
- What would happen to equity and margin level if another open position moved adversely at the same time?
- Can you manage the trade safely through a platform outage, gap or weekend?
Remember that a pip is not a universal dollar amount. EUR/USD and XAU/USD, for example, have different contract specifications. A position-size calculator that assumes the wrong symbol, currency or quote precision may produce a number that looks exact but is economically incorrect. Our trading-cost tutorial explains the additional fees you should include.
Three stress tests worth doing in a demo
First, add a hypothetical additional position in a highly correlated market; watch how used margin and combined potential losses change. Second, repeat your size calculation with a spread that is materially wider than normal. Third, simulate a price gap beyond your intended stop and ask whether the remaining account equity would still be tolerable. A demo cannot reproduce every live fill, but it can reveal confusion about terminal fields and arithmetic.
Avoid treating a high demo margin level as proof that a strategy is sound. Consistency of position sizing, independent trade rationale and an exit plan under adverse conditions matter more than simply staying above a broker threshold.
Frequently asked questions
Does 1:500 leverage mean I can only lose one five-hundredth of my trade?
No. The ratio primarily affects required margin. Market exposure and the price movement still drive trading P&L.
Is 30% stop-out guaranteed for every Tickmill account?
No. Verify the legal entity, client category, product and current account terms. Published examples can differ across offerings.
Can I prevent a margin call by opening more positions?
Opening additional positions generally increases exposure and may use more margin. A hedging position can introduce further costs and does not automatically eliminate liquidation risk.
Sources and related reading
Primary references: Tickmill margin call and stop-out levels, MT4/MT5 margin close-out FAQ, and Islamic account conditions. For commission and spread arithmetic, see the Classic vs Raw comparison. Checked October 2026.
Check the details before you trade
Confirm the broker entity, account eligibility, latest fees, platform options and risk documents with Tickmill. We may earn a commission from a qualifying referral. This is not personalised investment advice.
Visit Tickmill through our affiliate link →Important: Leveraged trading can cause significant losses and is not appropriate for everyone. This independent site is not operated or endorsed by Tickmill. Read the Affiliate Disclosure and Risk Disclosure.
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