How it works
Providers define the level as part of their margin rules. Some close the largest losing position first, while others follow a different liquidation sequence.
What to check
Check both the percentage threshold and the liquidation method. If several positions are open, the order in which they can be closed can affect the final account outcome.
- Find the percentage threshold
- Read the liquidation sequence
- Understand gap risk
Limits and risks
Stop-out rules are designed to protect the provider and limit negative balances, not to preserve a trading strategy. Positions may be closed during unfavorable market conditions.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.