What is Stop-Out Level?

The specific margin level at which a broker automatically closes a trader's open positions.

In-Depth Explanation

Usually expressed as a percentage (e.g., 50% margin level). It is the "safety net" to prevent an account from falling into negative balance.

"The trader hit their stop-out level after the unexpected market gap."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.