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Liquidation on MT5 happens when your account no longer has enough funds (margin) to keep your open positions. Once your equity drops below the required margin level, the system will automatically start closing your trades to prevent further losses.
How It Works:
MT5 constantly checks your margin level when you have open trades on your MetaTrader account.
If the margin level falls below a set threshold (50%), liquidation begins. After that the trades will be closed automatically.
Example:
Let’s say:
You deposit $2,000 (your starting equity).
You open a trade that requires $1,000 margin.
Due to losses, your equity drops to $400.
Now your margin level is:
$400 ÷ $1,000 × 100 = 40%
Since 40% is below the 50% threshold, MT5 will start closing your trades automatically.
Tips to Avoid Liquidation:
Monitor your used margin and free margin.
Use stop-loss orders to manage risk.
Avoid over-leveraging your account.
Add more funds if your margin level is getting too low.
Reminder: Trading with leverage increases both potential profits and losses. Make sure you understand the risks.
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