JoymistaWhat Is a Stop Out?
A stop out is the broker closing your trades automatically when the margin level falls to the minimum in its terms, to keep the account from going below zero.
Explained
Closing usually starts with the biggest losing trade and continues until the margin level is back above the threshold. In Joymista’s DEMO TRADING the forex account is stopped out when equity falls to 50% of the used margin.
Example
Example with made-up numbersUsed margin is 1,000 dollars and stop out is at 50%, so trades close when equity reaches 500 dollars.
Use it in Joymista
Related terms
Put it to work in Joymista
Signing up is free, some tools are free, and one subscription unlocks the rest.
Open in JoymistaEducational content, not investment advice.