What is a Stop Out?
A Stop Out is the automatic closure of trades when the remaining equity in a position drops to a critically low level.
In the terminal, the Stop Out level is set at 10% (or 20% for instruments like “Stocks”) — this is the ratio of the current Trade Result (i.e., the current value of the trader's equity in the position, taking into account Profit / Loss and commissions) to the Invested Funds (the amount reserved for that specific trade).
In other words, if the current ratio of Trade Result / Invested Funds equals 1/10 (or 2/10 for stocks), the trade will beclosed at the current available market prices.
Example:
Account balance: $1000
Amount invested in the trade: $500
Trade Result / Invested Funds = $500 / $500 = 100%
If the total loss (including all commissions) reaches -$450, then:
Current Trade Result = $50 → $50 / $500 = 10%
At this point, the Stop Out will automatically close the position. The remaining $500 not involved in the trade will not be affected.
What is a Margin Call?
A Margin Call is an automatic warning sent to the client when the remaining equity in the trade drops to a low level.
The Margin Call level is set at 50% or lower of the Trade Result / Invested Funds ratio.