What is Stop Out?
Now that you know what Margin Call and Free Margin are, it’s time to find out what Stop Out means. This is the point at which the broker starts closing the least-profitable open positions, in order to free up more margin. Every broker sets their own Stop Out level, and at FXTM you can see exactly at what point Stop Out would be triggered for each account in the Trading Accounts Overview section of the website. Let’s take FXTM’s Standard Account as an example. This account has a Stop Out level of 20% and a Margin Call of %40%, which means that once a trader reaches 40% of his Margin Level, he will receive a Margin Call. If the trader, then, doesn’t start closing his least-profitable positions and experiences further losses that bring him down to 20%, FXTM will start closing these positions for him because of Stop Out.
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