What is STOP OUT?

How the Stop out (SO) works, SO activation level

Written by Anna Niedobova

Updated: 2022-04-29 05:33:29

Stop out (SO) is a protective feature that helps traders manage their risks.

🚩For Clients who have accounts opened under FCA/EU/DFSA Branches - Stop out is activated when the margin level falls below 50%.

🚩For Clients who have accounts opened under IFSC Belize regulated entity - Stop out is activated when the margin level falls below 30%.

Once a stop out occurs, your open position with the biggest loss will be automatically closed until your margin level returns back above the SO level to protect your account from suffering further losses.

🚩🚩🚩To avoid being closed out of your position by a Stop out, you’ll need to ensure your margin level remains above the SO level by depositing more funds.

🚩🚩🚩The SO mechanism cannot be turned off or changed. The rules concerning both the functioning of the SO mechanism and the level of its activation are defined by the respective regulators.

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