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What is a Stop Out?
Updated over a year ago

Applying a level for the forced closure of a position (a 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 this level is reached, the position is automatically closed.

The Stop Out level on Libertex varies based on the instrument type. The Stop Out level for all instruments (except stocks) in a Libertex account is 10%. In other words, a trade is subject to automatic closure 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 if its current value is less than 20% of the initial amount invested, i.e., when the loss is 80% or more. The position will be closed at the first available price when it's closed. 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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