Margin call vs Stop out
Look-alike pair
Full entries: Margin call · Stop out.
A margin call and a stop out are both broker actions on a leveraged position, but they differ in severity: a margin call is a warning that your equity has fallen to a level requiring you to add funds or reduce exposure, while a stop out is the forced closure of positions that follows if the situation worsens. The single difference that matters is that a margin call gives you a chance to act, whereas a stop out acts for you.
Side by side
| Margin call | Stop out | |
|---|---|---|
| Trigger | Equity falls to the margin call level, a threshold set by the broker (often a percentage of used margin). | Equity falls to the stop out level, a lower threshold set by the broker (often a percentage of used margin). |
| Broker action | Notifies you to deposit more funds or close positions; no positions are closed automatically. | Automatically closes open positions, typically starting with the largest loser, until equity is back above the stop out level. |
| Your options | You can add funds, reduce position size, or do nothing and risk a stop out. | No options; the closure is final and executed by the broker. |
| Field mark | A margin call appears as a notification, alert, or email from your broker; the platform may show a warning but positions remain open. | A stop out appears as closed trades in your history, often with a note like 'stop out' or 'margin' in the order comment. |
| Typical sequence | Comes first, when equity drops below the margin call threshold. | Comes second, if equity continues to fall to the stop out threshold. |
| Regulatory variation | Margin call levels vary by broker, country, and regulator; some brokers may not issue a margin call at all. | Stop out levels also vary by broker, country, and regulator; the exact percentage and closure method are set by the broker's terms. |
Which word to use
Use margin call when you mean the warning that your equity has reached a broker-defined threshold and you still have time to act; use stop out when you mean the automatic closure of positions that occurs if you do not.
Family: XI · Look-alikes · Index A–Z