A stop-out is an automatic process that closes open positions when your account's margin level reaches the applicable stop-out level.
For Ultima Markets, the stop-out level is 20%.
A stop-out is designed to reduce the risk of further losses when there is insufficient margin to maintain your open positions.
How Is a Stop-Out Triggered?
Your margin level is calculated as:
Margin level = (Equity ÷ Used margin) × 100%
- Equity = Balance + Floating profit and loss.
- Used margin = The margin currently required to maintain your open positions
When your margin level reaches the applicable stop-out level of 20%, positions may be automatically closed.
A margin call occurs earlier when your margin level reaches 50%. This is a warning level; positions are not automatically closed at the margin call level.
What Happens During a Stop-Out?
When a stop-out is triggered, open positions may be closed automatically to reduce the margin used by your account, starting with the position carrying the largest floating loss.
Positions are closed at the available market price at the time of execution. The execution price may therefore differ from the price at which the stop-out level was reached.
A stop-out does not necessarily mean that every position on your account will be closed. After each position is closed, the margin level is recalculated. The process continues until the margin level rises above the stop-out level or until no positions remain.
Does a Stop-Out Close All Types of Positions
The stop-out applies to open positions including positions opened manually, by an Expert Advisor, or positions copied from a signal provider
Can the Stop-Out Level Be Changed?
The applicable margin call and stop-out levels are determined by the account's trading conditions and cannot be changed on request.
To reduce the risk of a stop-out, you can:
- Monitor your margin level and free margin.
- Reduce your position size.
- Close positions voluntarily when appropriate.
- Use Stop Loss orders to manage potential losses.
- Avoid using excessive leverage relative to your available funds.
Stop-Out Losses are not reimbursed
A stop-out closes positions at the prices available in the market at that time, and the resulting loss is a trading loss. It is not reimbursed.
If you believe your stop-out was wrongly triggered or your position was closed at a price that does not exist in the market, please contact our support team.
How to Monitor Your Margin Level
You can monitor your Equity, Used Margin, Free Margin, and Margin Level directly on your MT4/MT5 trading platform.
These figures help you understand how much margin is currently being used and how much capacity remains to maintain your open positions.
