A stop out occurs when your margin level falls to or below 20%. The margin level is calculated as:$$\text{Margin Level (\%)} = \frac{\text{Equity}}{\text{Used Margin}} \times 100$$Margin Level (%)=Used MarginEquity​×100

Example Calculation:

1. Account Details:
   • Account balance: 1,000 USD
   • Leverage: 500:1
   • Trade: Buy 1 lot of XAU/USD at 2,300 USD
2. Margin Required:

$$\text{Margin} = \frac{\text{Price × Contract Size × Lots}}{\text{Leverage}} = \frac{2,300 × 100 × 1}{500} = 460 USD$$Margin=LeveragePrice × Contract Size × Lots​=5002,300×100×1​=460USD

3. Margin Level with Loss:
   • Loss: 20 USD

$$\text{Margin Level} = \frac{\text{Equity}}{\text{Margin}} × 100 = \frac{1,000 – 20}{460} × 100 ≈ 213.04\%$$Margin Level=MarginEquity​×100=4601,000−20​×100≈213.04%

4. Equity at Stop Out (20% Margin Level):

$$x / 460 = 20\%, \quad x = 92 \text{ USD}$$x/460=20%,x=92 USD

Interpretation: When your equity falls below 92 USD, the system will trigger a stop out, automatically closing positions to protect the account.