The Stop Out Level is the point at which the broker automatically closes trades to protect the account from reaching a negative balance.
This happens when the Margin Level in your account drops to a certain percentage set by the broker. At this point, the system starts closing losing positions gradually, usually starting with the largest losing position, until the account returns to a safer level.
How to Enable Stop Out:
- Access the account or trading settings: Open the platform and go to account management.
- Click on “Alerts and Notifications.”
- A list will appear. Select “Forced Closure.”
- Move the toggle button to the on position.
- Monitor the margin level: Once enabled, trades will be closed automatically if the margin level falls to the specified limit.
How Can Stop Out Be Avoided?
To reduce the likelihood of reaching the Stop Out Level, it is recommended to follow these practices:
- Use risk management tools.
- Manage trade sizes carefully.
- Monitor the margin level continuously. Make sure to keep track of the margin level in your account, and it is preferable to maintain it above 150% to help avoid risks.