How to calculate drop down to stop out(stop loss).

[Sky All]

Dear experienced traders, 

Could you help me with a basic question? 

I try to find out what is stop out(stop loss), but I can't really understand that. 

One case in a real account, my broker's stop out was 50% and the account's leverage was 1:100. 

My balance was around $760, I thought it will be blow up if the float loss increase more over than 380, but it didn't. 

Finally, the maximum draw down increase to more than 60%(more than 460 float loss) at that day, and it didn't blew up. 

Do you know what does it mean when the broker said the stop out is 50%? 

Why the system didn't stop my trade even the maximum draw down was more than 60%, but the account stop out was 50%?

Thank you in advance and best wishes,

Sky

[Soewono Effendi]

Sky L:

Dear experienced traders, 

Could you help me with a basic question? 

I try to find out what is stop out(stop loss), but I can't really understand that. 

One case in a real account, my broker's stop out was 50% and the account's leverage was 1:100. 

My balance was around $760, I thought it will be blow up if the float loss increase more over than 380, but it didn't. 

Finally, the maximum draw down increase to more than 60%(more than 460 float loss) at that day, and it didn't blew up. 

Do you know what does it mean when the broker said the stop out is 50%? 

Why the system didn't stop my trade even the maximum draw down was more than 60%, but the account stop out was 50%?

Thank you in advance and best wishes,

Sky

Please be aware that MARGIN LEVEL is NOT percentage of account balance.

For excellent explanation, please refer to 
https://www.babypips.com/learn/forex/what-is-margin-level

[Sky All]

Soewono Effendi:

Please be aware that MARGIN LEVEL is NOT percentage of account balance.

For excellent explanation, please refer to 
https://www.babypips.com/learn/forex/what-is-margin-level

Thank you, Soewono.