Stop-Out Level

The stop-out level is the margin level at which a broker automatically closes open positions to stop an account from losing more than its deposited funds. It sits below the margin call threshold: the call is a warning, the stop-out is the forced liquidation. Each broker publishes its own percentage in the account terms, and regulated retail accounts in several jurisdictions must apply a mandatory minimum. When the level is breached, the platform typically closes the largest losing position first and continues until margin level recovers above the threshold. Stop-outs happen at whatever price is available, so fast markets and gaps can produce fills well beyond the theoretical trigger point.