Definition

Stop-out

A stop-out is the level at which a broker begins force-closing an account's positions — typically the largest losing one first — to protect the account.

At or below the stop-out level, the decision to close is no longer the trader's. On crypto exchanges the equivalent is a liquidation against maintenance margin.

Margin level and the stop-out, explained →

Related terms

Margin level — Margin level is the percentage (equity ÷ used margin × 100) a broker uses to decide when an account is too stretched to keep its positions open.
Margin call — A margin call is the warning level at which a broker stops you opening new positions and expects you to add funds or reduce risk.

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