Stop-Out Level

What Is a Stop-Out Level?

The stop-out level is the point where your broker takes matters into its own hands. When your margin level drops to this threshold, the broker automatically starts closing your positions, beginning with the largest losing trade. This is a safety mechanism designed to prevent your account from going negative. The exact level varies by broker and jurisdiction: EU-regulated brokers commonly use 50%, while offshore brokers may set it at 20% or even lower.

Stop-Out vs. Margin Call

A Margin Call is a warning. A stop-out is an action. If your broker has a margin call level at 100% and a stop-out level at 50%, here is how it works: when your margin level drops to 100%, you get a warning. If equity keeps falling to 50%, the broker begins liquidating. Some brokers only have a stop-out level with no separate margin call warning, so always check your broker's specific policy.

Protecting Yourself

Never rely on the stop-out level as your risk management plan. It exists as a last resort, not a strategy. Always use stop-loss orders on every trade and size your positions so that even multiple simultaneous stop-losses won't push your margin level anywhere near the stop-out threshold. Use the Margin Calculator to understand your margin requirements before trading, and keep your total margin usage well below 30% of your equity.