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What is a Stop Out?

Applying a level for the forced closure of a position (Stop Out level) is one of the basic trading conditions on the Libertex platform. The Stop Out level is a percentage of the initial trade amount. When reaching this level, the position is automatically closed.

The Stop Out level in Libertex varies depending on the instrument type. When trading all instruments (except stocks) in a Libertex account, the Stop Out level is 10%. In other words, a trade will be subject to being automatically closed if the loss on the trade reaches 90% of the investment amount.

When trading stocks, the Stop Out level is 20%. This means that the position will be automatically closed when its current value is less than 20% of the initial amount invested, i.e., when the loss is 80% or more. The deal will be closed at the first available price at the moment of closing. Because of this, the final result of the position may differ from the limit set for closing the trade via a Stop Loss.

 

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