A Stop Out is the automatic closure of open positions when your account's margin level falls below a certain threshold. This mechanism helps protect your account from falling into a negative balance.
How the Stop Out works:
When you have active trades, your platform displays your margin level, calculated as:
Margin Level (%) = (Equity / Used Margin) × 100
Equity = Account balance + floating (unrealized) P/L
This calculation does not include any funds in your WorldTrade wallet
Stop Out Threshold Example:
At Atmexx, the Stop Out level is set at 50% across all account types and platforms.
Scenario:
Initial deposit: $1,000
Used margin: $100
Equity drops to: $50
Margin Level: (50 / 100) × 100 = 50%
✅ A Stop Out will be triggered, and positions will start closing automatically
Real Trade Example:
Asset: Brent Crude Oil, 100 barrels (0.1 lot)
Entry price: $55
Leverage: 1:10
Account balance: $600
Total position value: $55 × 100 = $5,500
Required margin: 10% → $550
Free margin: $600 – $550 = $50
To trigger a Stop Out at 50% margin level:
Equity needs to fall to $275
Loss needed: $600 – $275 = $325
Per-barrel loss: $325 / 100 = $3.25
Stop Out price: $55 – $3.25 = $51.75 (Bid price)
So, if the market drops to $51.75, your position will be closed due to a Stop Out.
Additional Notes:
Stop Outs help prevent negative balances, but during high volatility or market gaps, slippage may occur, and positions might be closed at less favorable prices.