A Stop Out occurs when the broker automatically closes one or more of your open positions because your margin level has fallen below a predefined threshold.

This mechanism is designed to help prevent further losses and protect your account from going into a negative balance.

📉 When does a Stop Out happen?

A stop-out is triggered when:

• Your account equity decreases due to floating losses

• Your margin level drops below the broker’s stop-out level (e.g., 20%)

  
  

📊 Margin Level Formula

Margin Level = (Equity ÷ Used Margin) × 100%

If the margin level falls below 20%, positions are typically closed automatically — usually starting with the largest losing position.

⚠️ Important Notes

• Stop-out is different from a margin call.

• A margin call is a warning level; stop-out is forced liquidation.

• Rapid market movements may result in slippage during automatic closure.

  
  

⚠️ This content is provided for informational purposes only and does not constitute investment advice. Trading with leverage involves significant risk.