Stop out
Updated 2026-09-20
Definition
The forced closing of positions by the broker when the margin level drops below the minimum threshold.
Why it matters
It exists to stop the account going negative. It usually closes the most losing positions first, often at the worst moment. For European and UK retail clients the close-out level is generally at 50% of margin.
Practical example
An account with $2,000 of used margin and $1,000 equity has a 50% margin level: a stop out may trigger.
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Educational content, not financial advice. Trading involves risk.