3 minute read
What is Stop Out Level in Exness?
When trading with leverage on a platform like Exness, risk management is just as important as your trading strategy. One critical risk-related concept every trader must understand is the Stop Out Level. Failing to manage your margin and stop out levels properly could mean losing all your positions in a matter of seconds.
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🛑 What is Stop Out Level?
The Stop Out Level is the point at which Exness will automatically begin closing your open positions to prevent your account from going into negative balance. This level is triggered when your margin level falls to a specific percentage defined by your account type.
📉 Stop Out Level Formula:
Margin Level = (Equity / Used Margin) × 100
If your margin level falls below the designated stop out threshold, the system will begin force-closing trades starting from the least profitable position.
🔍 Stop Out Level by Account Type on Exness
Exness offers several account types, and the stop out levels vary depending on which one you're using:
Standard Accounts: Stop out level is typically 0%
Pro Accounts: Stop out level is around 30%
Zero & Raw Spread Accounts: Can have stop out levels around 50%
These levels can change depending on the platform and regulatory conditions.
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🧠 Why Is the Stop Out Level Important?
Understanding and respecting the stop out level is crucial for several reasons:
Avoids Total Loss: It protects your capital from being wiped out.
Prevents Negative Balance: Exness offers negative balance protection, but managing stop outs helps avoid triggering it.
Ensures Trading Discipline: Encourages proper use of leverage and margin.
💡 How to Avoid Hitting the Stop Out Level
Even professional traders use strategies to ensure their margin level stays healthy. Here are some tips to stay above the stop out zone:
✅ Use Lower Leverage
High leverage can amplify gains, but also increases your risk. Adjust leverage based on volatility and account size.
✅ Maintain a High Margin Level
Try to keep your margin level above 200% to have a safe buffer.
✅ Monitor Equity and Margin Constantly
Use the Exness Terminal or MT4/MT5 platforms to track your equity and margin in real time.
✅ Set Stop-Loss Orders
Never trade without stop-loss protection, especially during news events or high volatility.
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📊 Example Scenario
Let’s say you have:
Equity = $100
Used Margin = $80→ Your margin level = (100/80) × 100 = 125%
If the stop out level for your account is 50%, and the market moves against you causing your equity to drop to $40, the new margin level becomes:
(40/80) × 100 = 50%
At this point, Exness will start automatically closing your positions.
🚀 Final Thoughts
The stop out level is your final line of defense. It’s not just a system rule—it's a built-in risk management tool to help you protect your account. Knowing how it works and how to avoid triggering it will make you a smarter, safer trader.
📈 Ready to experience better risk management tools with a trusted broker?👉 Open an Exness account now and take control of your margin.
See more:
How to create an account with EXNESS
how to create EXNESS mt4 account
