A stop-out occurs when your account equity falls below a certain threshold. This threshold is set at 20% of the margin requirement for your open trades.

To be more precise:

Stop-Out Occurs When: Your Margin Level (Account Equity ÷ Required Margin *100%) <= 20%

Now, let's break down these terms:

• Account Equity: This is the total value of your trading account, which includes your initial deposit, profits, and losses.

• Required Margin: The required margin represents the amount of capital necessary to maintain your open positions. It varies based on the size of your trades and the financial instruments you are trading.

For example: you have an account with $10,000, and you open positions requiring a total margin of $2,000. Initially, your account equity is greater than the required margin, and you have a comfortable buffer.

However, if your trades move against you and your account equity drops to $1,600, your effective margin reduces accordingly. If this decrease causes your effective margin to reach or fall below $400 (20% of $2,000), a stop-out will occur. The system will automatically close your trades to limit further losses.

To avoid stop-outs, Titan FX will send you a notification email when your account equity drops below 90% of your required margin.