The event when the broker begins to forcibly close an account’s open positions because available margin has fallen too low. Each broker sets a Stop-Out Level (for example, 50% margin level), and if your account equity/(used margin) falls to or below that, cTrader will initiate automatic position closures to prevent further losses. With cTrader’s Smart Stop Out system, this closure is partial (see Smart Stop Out above) – cTrader will gradually reduce positions starting with the largest until margin level is sufficient. In essence, stop-out is a last-resort safety net: it protects the account from going negative by closing trades when you no longer have enough margin to sustain them. Traders should always monitor margin to avoid reaching stop-out.

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