When your margin level  reaches a certain percentage, stop out automatically closes that position. Margin call does not close your positions automatically, it only warns you that your position is falling. Stop Out at Artcap = 30%.

Leverage changes the initial amount held for margin and your capital, and this is where it can affect the stop out. Leverage allows a trader to increase their purchasing power by a certain ratio: 1:200, 1:500, etc. For example, 1:200 means that for every $1 invested in margin, it will increase by 200. This is useful for trading large volumes with tight margins, but also carries a higher potential risk as positions are usually more volatile.

The margin level is the meeting point of leverage and stop-out.

The key factor here is volatility.

The higher the leverage, the lower your margin and the faster your account reacts to changes in its position.

The lower the leverage, the higher your margin and the less likely you are to change your position.

Trading with higher leverage allows traders to open larger orders with the same margin requirements.
Trading larger orders is risky, especially during periods of market volatility, and the stop-out can happen more quickly. This often underestimated aspect must be taken into account for comprehensive risk management.

                                    We wish you successful trading with ArtCap !