A stop-out level is the point at which your broker automatically begins closing your open positions to prevent your account from going into a negative balance. It is a safety mechanism — both for you and for the broker — that limits losses when a trade moves severely against you and your margin buffer is nearly exhausted.
Trigger Condition
Trigger condition: The stop-out is triggered when your Margin Level (Equity / Used Margin x 100) falls to or below the stop-out threshold. Common stop-out levels are set at 20%, 30%, or 50% of used margin, depending on the broker.
Automatic Position Closure
Automatic position closure: When stop-out is triggered, the system automatically closes your most losing position first, then the next, until the margin level is restored above the threshold.
Stop-Out vs. Stop-Loss
This is NOT a stop-loss: Your stop-loss is a pre-set order that closes a specific trade at a specified level. A stop-out is an automated account-level protection triggered by overall margin exhaustion.
Margin Call vs. Stop-Out
Margin Call vs. Stop-Out: A margin call is a warning level at which the broker alerts you to act. You still have time. A stop-out is an automatic action level at which the broker begins closing positions without waiting for you.
How to Protect Your Account
The most effective protection against stop-out is proper position sizing. If your risk per trade is limited to 1–2% of your account balance, it is virtually impossible to reach stop-out on a single trade. Monitor your free margin and margin level regularly in the AP Web Trader account summary panel.
Key Takeaway: The stop-out level is the broker’s last resort — your positions are closed automatically to protect both parties from a negative balance. Prevent it by using proper position sizing, always setting stop losses, and monitoring your margin level regularly.