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Stop-out is the automatic closure of open positions when your account’s margin level falls below a minimum threshold set by the broker. It is designed to limit further losses, but in fast or gapping markets positions can close at prices that leave the balance below zero. At GCC Brokers, the stop-out level is 20% across all account types.
Your margin level drops to 20% after a series of losing trades. The platform automatically closes the position with the largest loss first, one position at a time, until the margin level is back above 20%. In a fast or gapping market the closing price can be worse than the price at which stop-out was triggered.
