Automatic closure once your margin falls too far
A stop-out is the broker automatically closing your position once losses drive the deposited margin below a set ratio. The line exists to stop losses widening further, though a sudden gap in the market can still leave a loss larger than the amount deposited. Each broker sets its own trigger level.
Closing automatically once the margin ratio falls below 50% is a common rule.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.