// TRADING TERMINOLOGY

What is Stop-Out Level?

The specific margin level at which a broker automatically closes a trader's open positions.

In-Depth Explanation

Usually expressed as a percentage (e.g., 50% margin level). It is the "safety net" to prevent an account from falling into negative balance.

"The trader hit their stop-out level after the unexpected market gap."

A broker's demand that a trader deposit more money to cover potential losses on open positions.

Margin is the portion of your account balance that the broker "locks away" as collateral to keep your leveraged position open.

An order placed with a broker to sell (or buy) an asset when it reaches a certain price, to limit losses.

An order placed to close a profitable trade once it reaches a specific price target.

Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.

Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.

A stop-loss is your insurance policy. Learn how to place stops based on market structure rather than random numbers.

Knowing the terms is just the start. Learning how to apply them is where the edge is found.