What is the actual meaning of Stop-out level

Discussion in 'Newbie Questions' started by praise, Apr 11, 2014.

  1. praise

    praise Banned

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    Am new in forex so the actual meaning of Stop-out level seems confusing to me, can any one please tell me its actual meaning?
     
  2. Enivid

    Enivid Administrator Staff Member

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  3. vicknic

    vicknic Confirmed ProfiForex Representative

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    It refers to the point at which all active orders in the forex market are closed automatically by a broker due to a reduction in the trader’s margin to levels that can no longer sustain the open orders. I am careful about the number of positions I open per day since my stop out level is 15%.
     
  4. Fxpipper

    Fxpipper Master Trader

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    When a traders position goes against him, it leads to a margin reduction. And once the margin reduces past the stop out, all open trades are automatically closed by the broker. Remember, the stop out level varies from one broker to the other, so please check with your broker regarding this..
     
  5. Exness Support

    Exness Support Active Trader

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    When a broker says that Margin Call = 30% and Stop Out level = 20%,
    this means that once your Account Equity = Required margin x 30%
    you'll get a Margin Call in the form of a Warning.

    And when your Account Equity = Required margin x 20%
    your trades will be closed automatically starting form the least profitable one.
     

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