Understanding Stop Out Levels in Forex Trading
In forex trading, a Stop Out Level is when your Margin Level falls to a specific percentage.
It's when your broker automatically closes your open positions to protect you from further losses.
The Stop Out Level is similar to the Margin Call Level, but it's much worse.
It happens when your Margin Level can no longer support your open positions due to a lack of margin.
When the Stop Out Level is reached, your broker starts closing out your trades, starting with the most unprofitable one.
This process is automated and cannot be stopped.
20% Let's say your broker has a Stop Out Level at
If your Margin Level reaches 20%, your position will be automatically closed.
This results in a realized loss and a decrease in your account balance.
If you have multiple positions open, the broker usually closes the least profitable one first.
If that's not enough to get your Margin Level back above the Stop Out Level, more positions will be closed.
The Stop Out Level is meant to protect you from losing more money than you have deposited.
It's important to monitor your account and maintain the required margin to support your open positions.
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