Stop Out level

What is Stop Out A certain required margin level (in percentage) at which your trading positions will start to automatically close in order to prevent further account losses into the negative territory.

For example: Your balance is $10,000. You open a trading position with $1,000 margin. If the loss on this position reaches $9,500, your account equity becomes: $10,000 — $9,500 = $500 (50% of your used margin) At that time, a Stop Out will be issued and your positions will start closing.( AvaTrade has Stop Out level as 50%)