Ohio Markets’ stop out ratio is 20%, which means:

• If your equity falls to or below 20% of required margin, the system automatically closes positions with the highest losses first until your margin level is restored above 20%.

However, in some situations, your account may still show a negative balance due to the nature of leveraged CFD trading:

1. CFDs are leveraged instruments:
   • Higher leverage increases both potential profits and losses.
   • If the market moves sharply against your positions, losses can exceed your initial investment.
2. High volatility or large positions:
   • When holding large positions with high leverage, sudden market fluctuations can push your margin level below 20% before the system fully closes positions, causing a negative balance.
3. Stop out threshold is not absolute:
   • The 20% margin level is the trigger for stop out, but during fast-moving markets, prices can drop rapidly past this threshold, leading to further losses.

Key Takeaway: Negative balances occur in extreme market conditions due to leveraged trading and rapid price movements. Ohio Markets recommends monitoring margin levels closely, using appropriate leverage, and managing positions to mitigate risk.