Now that we have covered Free Margin and Margin Call, it’s time to look at Stop Out. Stop Out is the level at which the broker starts closing the least-profitable open positions in order to free up margin. At FXTM, you can see at which point Stop Out will be initiated for each trading account in the Trading Accounts Overview section. As you can see in this example As you can see in this example
the Stop Out level of 20%, while the Margin Call is at 40% the Stop Out level of 20%, while the Margin Call is at 40% What does this mean exactly? Well, in this case it means that once the trader reaches 40% of his Margin Level, he will get a Margin Call. If the trader doesn’t start closing his least profitable positions, and he experiences further losses that bring him to 20% of his used margin, Stop Out will be triggered. So now you know what Stop Out is! Here’s hoping you never have to experience it. Till’ next time!