Stop-Out Level

The stop-out level is the broker-defined margin level (equity ÷ used margin × 100) at which the broker automatically liquidates open positions to stop the account from falling into deficit. It sits below the margin-call level: the margin call warns you, and the stop-out enforces. When triggered, positions are closed at prevailing market prices — often the most unfavourable possible moment — and you have no control over the timing or sequence. Common stop-out thresholds sit somewhere below the margin-call level, but exact figures vary by broker and account. High leverage and oversized positions make the gap between a margin call and a stop-out perilously small, so a single sharp move can take you from comfortable to liquidated. The stop-out is the system’s last line of defence, and reaching it almost always means the trade was sized too aggressively.

In plain English — The stop-out level is the point at which a broker stops warning and starts acting: if your margin level falls to this threshold, the broker automatically closes some or all of your open positions to prevent further losses. It comes after the margin call stage and is a forced liquidation, usually at the current market price and not at a moment of your choosing. It exists to protect the broker from your account going negative, and hitting it means losses are being crystallised whether you like it or not.

If your broker’s stop-out level is 50%, then when your equity falls to half of your used margin, the broker begins force-closing positions — typically the largest losers first — until the margin level is restored above the threshold.