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A “Stop Out” is an expression with two different meanings in different financial markets.

In the forex market, it is the level at which all of a trader’s positions are automatically liquidated because their margin has decreased to the point where it can’t support a continuing open position.

In other markets, it describes the fact that an open trading position has reached the stop-loss level at which the trader ordered that it be sold.

Once this has happened, the trader is described as “stopped out“.

Basically, you had submitted a pending order in the past, your “stop loss” order, and this order was triggered.

To make it easier to understand the differences between the two meanings, one is an ACTION, while the other is a STATE (a specific condition).

In forex, stop out is an action taken by a broker in relation to a client whose margin is now inadequate.

In other markets, the state of being stopped out in securities markets is the direct result of the trader’s instructions having been followed.