What is Stop Out?
Updated October 17, 2026
A stop out is when your broker automatically closes your trades because your margin level fell too low.
Stop out is the step after a margin call. The broker starts closing your biggest losers to protect itself.
It usually happens at a set margin level, often somewhere around 20% to 50% depending on the broker.
Getting stopped out often locks in a big loss. It's a sign the position sizes were too large for the account.
Example
Your margin level hits 50% and the platform closes your gold trade without you touching anything.
Questions people ask
Can I lose more than my deposit?
Many brokers offer negative balance protection, but check yours before you trade.
How do I avoid stop outs?
Risk small per trade, always use a stop loss and don't stack too many trades at once.
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