What is the margin close-out level for Australian retail clients?
Verdict
- The exact margin close-out percentage for Australian retail CFD accounts is set out in each broker's PDS; Pepperstone, our top pick, issues its ASIC PDS dated August 2026, and that document, not a blog, is where to read the figure.
- We have not verified Pepperstone's close-out percentage from its pages, so we don't quote a number here.
- Your margin level is equity divided by the margin your open positions require; a close-out happens when it falls to the broker's stated level.
- Using less than the maximum leverage (1:30 on major FX for retail) is the simplest way to keep well clear of it.
A margin close-out is the point at which a broker starts closing your positions because your equity no longer covers enough of the margin they need. We could not confirm the percentage from Pepperstone's published pages in our fact check, so rather than repeat a figure we haven't verified, this page shows you where to find it and how to work out your own distance from it.
Where to find the figure for your account
For an account with Pepperstone Group Limited (AFSL 414530), the governing document is the Australian Product Disclosure Statement, dated August 2026, together with the client agreement. Search the PDS for 'close-out' and 'margin' and note two numbers: the level at which positions are closed, and whether any warning (a margin call) comes before it. Ask support on 1300 033 375 to confirm in writing if the wording is unclear. We still rank Pepperstone first for Australians: retail leverage is capped at 1:30 on major FX and a negative balance is restored to zero, which limits the damage if a close-out comes too late in a gap.
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How the margin level is calculated
Margin level is your equity (balance plus or minus open profit and loss) divided by the margin your open positions require, shown as a percentage. Brokers compare that number with their close-out level and start closing positions once it is reached.
| Equity | Required margin | Margin level |
|---|---|---|
| A$2,000 | A$1,000 | 200% |
| A$1,500 | A$1,000 | 150% |
| A$1,000 | A$1,000 | 100% |
| A$750 | A$1,000 | 75% |
| A$500 | A$1,000 | 50% |
Working out your own buffer
Once you know your broker's close-out level, the sum is simple. Take the example above with A$2,000 of equity. If the close-out level were L percent of A$1,000 required margin, positions would start closing when equity fell to A$1,000 × L/100. Each 1% move in AUD/USD against a A$30,000 position costs A$300, so you can count how many percent the market can move before you hit the line. Halve the position and both the required margin and the loss per 1% halve, which roughly doubles your room.
Ways to stay away from a close-out
- Use a fraction of the cap: 1:30 is the most a retail account allows on major FX, not a target.
- Set stop-losses that close a trade well before your margin level gets near the close-out level; Pepperstone offers no guaranteed stops, so leave room for slippage.
- Fund instantly when needed: PayID and cards credit immediately at Pepperstone, BPAY takes up to a business day.
- Watch correlated positions: several AUD trades fall together and drain margin at once.
Why a close-out isn't a guaranteed exit
Close-outs execute at the next available price. In a fast market or over a weekend gap, the fill can be well past the level, and equity can even go below zero. For Australian retail clients at Pepperstone, a negative balance is restored to zero, so the loss stops at your deposit. Capital.com, our second choice, offers guaranteed stop-losses if you want an exact exit price.
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Sources
Pepperstone's Australian legal and fee documents.
Is a margin call the same as a close-out?
No. A margin call is a warning that your margin level is falling; a close-out is the broker actually closing positions. Check your PDS for both levels.
Does the close-out level change with leverage?
The percentage is set by the broker's terms, but higher leverage means a smaller price move takes you there, because each position needs less margin relative to its size.
Can I lose more than my deposit after a close-out?
Not as an Australian retail client of Pepperstone: a negative balance is restored to zero.
CFDs are leveraged and complex, and you can lose money rapidly. Make sure you understand how they work and can afford the risk. Nothing here is investment advice; broker terms change, so confirm them in the broker's own documents before you deposit.