Stop Out and Margin Levels by Brokers

Trading Discussion
1

Hi all,

Question on what is meant by a % Stop Out and Margin Level.

I noticed brokers have this % level per account type called Stop Out, or Margin. Does that mean that if I hit that % during a trade they will automatically stop me out?

So for example, if I have $10,000 in margin, and I am in a trade that is -$7,000 with a Stop Out of 30% they will automatically close my trade with the loss of $7,000?

Thank you!

2

Hay very good rule designed to help you survive another day and limit the broker’s risk, can you adjust that percentage to meet your risk tolerance/risk rules?