In Forex trading, a Stop Out Level is when your Margin Level falls to a specific percentage (%) level in which one or all of your open positions are closed automatically (liquidated) by your broker. This liquidation happens because your trading account can no longer support the open positions due to a lack of margin. More specifically, the Stop Out Level is when the Equity is lower than a specific percentage of your Used Margin. If this level is reached, OXShare will automatically start closing out your trades starting with the most unprofitable one until your Margin Level is back above the Stop Out Level.
Example: Stop Out Level at 40%
This means that your trading platform will automatically close your position if your Margin Level reaches 40%.
Suppose you bought EURUSD, and the market started falling against you.
Balance: $1,000
Used Margin: $200
Equity = Balance + Floating P/L
When your equity is equal to $80 (40% stopout multiplied by the used margin), then your stopout will be triggered and your position will be closed out.