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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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