A Stop-Out is the forced closure of a client’s positions at current market prices. This occurs when the ratio of your deposit plus current losses to the reserved funds (pledge) for open positions becomes equal to or less than the Stop-Out level set by the Company. Positions are forced to close at the active price when this ratio is reached. The positions are closed in order until the reserved funds are higher than the established Stop-Out level. The Stop-Out level is 50% of all trading instruments for MT4 Market and MT4 Market Pro accounts.
You have a deposit of 5000 Euros.
You open a USD/JPY transaction for 100,000 base currency units with leverage of 1:500 (for MT4 Market Pro).
As such, the reserved funds for the open position are 200 Euros.
The Stop-Out level is 50% of the reserve fund amount. So, when your available funds reach 100 Euros (=5000 Euros - 4900 Euros), the position will be closed.
Please note that the leverage values may differ for MT4 Market and MT4 Market Pro accounts. Learn more about in the Specification.