What is a Stop Out?

Created by Christie Chrisostomou, Modified on Thu, 31 Jul at 10:40 AM by Junsuda Chaiwunna

Stop out (SO) is a protective feature that helps traders manage their risks.

Stop out is activated when the margin level falls below 30%.

Once a stop out occurs, your open position with the biggest loss will be automatically closed until your margin level returns back above the Stop Out level to protect your account from suffering further losses.

❗️The Stop Out mechanism cannot be turned off or changed. The rules concerning both the functioning of the SO mechanism and the level of its activation are defined by the respective regulators.

A good way of knowing whether your account is healthy or not is by making sure that your Margin Level is always above 100%. Once your Margin Level reaches 100%, you will receive a Margin Call.