Stop Out is the forced closure of positions by the broker when the Margin Level on your account falls below a critical threshold.
At FBS, the Stop Out level is 20%
When your losing positions reduce Free Margin, the Margin Level decreases.
If it reaches the Stop Out level, the broker automatically starts closing your positions, beginning with the most unprofitable one, to protect the account from going into a negative balance.
For example:
Stop Out level = 20%
Your Margin Level drops to 19% → The broker forcibly closes one or more positions.
Important to know
• Stop Out is triggered automatically — you cannot cancel it.
• After Stop Out, some or all positions will be closed at the current market price.
• The purpose of Stop Out is to prevent the account from going deeply negative.
To avoid Stop Out
Monitor your Margin Level and avoid letting it fall to critical values. Use reasonable position sizes and stop-loss orders.