In the StocksTrader platform, the Stop Out level refers to the specific percentage of the Margin Level at which open positions are automatically closed. This mechanism is designed to protect your account from further losses when the funds available are no longer sufficient to maintain open trades.
Stop Out is triggered automatically when the Margin Level reaches or falls below the required threshold. StocksTrader does not provide a Margin Call, meaning that no warning is issued before the Stop Out is activated.
The exact Stop Out level depends on your broker and trading conditions. Typically, it ranges from 20% to 50%.
For example, if the Stop Out level is 20%, open positions will be automatically closed when the Margin Level (Equity ÷ Margin × 100) reaches or falls below 20%. This applies even when trading without leverage.
When the Margin Level reaches or falls below the Stop Out level, the system sends Stop Out order(s) to close all open positions.