Stop loss vs Stop out
Look-alike pair
Full entries: Stop loss · Stop out.
Stop loss is an order you place to exit a position at a chosen price, while stop out is the broker's forced closure of your position when your account no longer meets margin requirements. The single difference that matters is who initiates the exit and why: you set a stop loss for risk control, but a stop out is triggered by the broker's margin rules.
Side by side
| Stop loss | Stop out | |
|---|---|---|
| Who initiates | You (the trader) place the order. | The broker (or platform) forces the closure. |
| Trigger condition | Your chosen price is reached. | Your account's margin level falls below the broker's stop-out level. |
| Purpose | To limit your loss on a trade to a predetermined amount. | To protect the broker from further losses if your account becomes under-margined. |
| Field mark | Appears in your order list as a working stop order (e.g., 'Stop Loss' or 'SL'). | Appears in your account history as a forced liquidation (e.g., 'Stop Out' or 'Margin Call'). |
| Control | You set the level and can modify or cancel it. | You cannot prevent it once the margin level is breached; the broker closes positions automatically. |
| Variation | The ability to place stop-loss orders and the exact execution method vary by broker and market. | The stop-out level (e.g., 50% margin level) and the order of closing positions vary by broker and regulator. |
Which word to use
Use stop loss when you are describing a risk-management order you place yourself; use stop out when you are describing the broker's forced closure of your position due to insufficient margin.
Family: XI · Look-alikes · Index A–Z