Stop Out is an automatic feature that closes a Forex trade when its loss reaches the Stop Out level set for the asset.
🛡️ What is Stop Out?
Stop Out is an automatic closing feature that activates when a Forex trade reaches a specific loss level.
The Stop Out level depends on the asset you're trading. It determines how much of your invested amount can be lost before the platform automatically closes your position.
Stop Out is applied automatically according to each asset's trading conditions.
⚙️ How does Stop Out work in Forex?
Olymptrade applies different Stop Out levels depending on the asset.
Most assets: Stop Out is set at 0%. This means the trade is automatically closed when the loss reaches 100% of the invested amount.
Some assets: Stop Out is set at 50%. For these assets, the trade is automatically closed when the loss reaches 50% of the invested amount.
You can check the current Stop Out level for each asset in its Trading Conditions.
⏱️ When does Stop Out occur?
Stop Out is triggered when your trade reaches the applicable loss threshold.
The platform monitors your trade and automatically initiates its closure once that threshold is reached.
The applicable percentage depends on the selected asset and its trading conditions.
📍 Good to know: Stop Out works automatically. You don't need to configure it when opening a Forex trade.
📉 What happens when Stop Out is triggered?
When the Stop Out level is reached, the platform initiates the trade closure. The trade is closed at the next available market price, which determines the final result.
Market movements can sometimes cause a difference between the expected closing price and the actual execution price. This is known as slippage.
💡 Good to know: For assets with a 50% Stop Out level, slippage may cause the final loss to exceed the initial 50% threshold. Under certain market conditions, the loss may reach up to 100% of the invested amount.
🔎 Where can you check your Stop Out level?
You can find the applicable Stop Out level in the asset's Trading Conditions.
Before opening a trade, you can also review the available trade information in the trading panel.
Each asset has its own trading conditions, so checking this information helps you understand the applicable Stop Out level.
🔄 What's the difference between Stop Out and Stop Loss?
Both features automatically close Forex trades, but they work differently.
Stop Out | Stop Loss |
Automatically applied by the platform. | Configured by the trader. |
Activates when the asset's predefined loss threshold is reached. | Activates when the trade reaches the loss level selected by the trader. |
Its level depends on the asset's trading conditions. | Its level can be adjusted according to the permitted trading conditions. |
Requires no manual configuration. | Allows traders to choose an automatic closing condition. |
Stop Out is an automatic mechanism built into the platform, while Stop Loss gives you the option to select your own closing condition.
Both are subject to market execution conditions, including possible slippage.
💡 Example: How Stop Out works
Imagine you open a Forex Buy trade with an investment of $10.
Let's compare how Stop Out works for two different assets.
Example 1: EUR/USD
0% Stop Out
Trade details | Value |
Asset | EUR/USD |
Investment | $10 |
Stop Out level | 0% |
Loss threshold | $10 |
If the trade reaches a loss of $10, the platform automatically initiates its closure.
Example 2: BRENT
50% Stop Out
Trade details | Value |
Asset | BRENT |
Investment | $10 |
Stop Out level | 50% |
Loss threshold | $5 |
If the trade reaches a loss of $5, the platform automatically initiates its closure.
In both cases, the actual closing price determines the final result, taking market execution conditions into account.