In plain English
What Stop-out level means
Platforms commonly express a stop-out level as a margin-level percentage, such as equity divided by used margin. Some regulatory CFD regimes instead require account-level margin close-out when funds and unrealized net profits fall below a specified portion of initial margin. The broker’s terms determine which positions may be closed, when, and in what order.
Why it matters
A stop-out can close positions at prevailing executable prices, which may be worse than an expected chart price in a fast or gapping market. Closing one position can change used margin and equity, potentially affecting remaining positions. It is therefore important to distinguish the trigger from the actual execution result.
Example
Assume a platform’s stop-out threshold is 50% margin level. With used margin of $2,000, the threshold equity is $1,000 because $1,000 ÷ $2,000 × 100 = 50%. If equity falls below that figure, the platform may begin closing positions under its rules; fills can differ from the trigger price.
Quick answers
Common questions
Is the stop-out level always 50%?+
No. Broker policies vary. In the European retail-CFD framework, the standardized account-level margin close-out threshold is 50% of required initial margin, but that does not establish a universal global platform stop-out setting.
Which position is closed first at stop-out?+
There is no universal rule. The broker’s agreement or platform logic may close the largest losing position, the position requiring the most margin, positions in a specified order, or one or more positions considered most favorable to the client under applicable rules.
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