When does PU Prime automatically close positions during a stop-out?
A stop-out is the automatic closing of open positions when your account’s margin level falls below 20%. The system closes positions to reduce your account’s margin requirements. This mechanism applies automatically and cannot be switched off or adjusted on request.
When are a margin call and stop-out triggered?
| Account Margin Level | What Happens |
50% or below | A margin call is triggered, warning that your account has insufficient equity relative to its used margin. |
Below 20% | A stop-out is triggered, and the system begins closing open positions automatically. |
A margin call and a stop-out are based on your account’s margin level, rather than its balance alone.
How is my margin level calculated?
Margin level = (Equity ÷ Used margin) × 100%
- Equity: Your account balance adjusted for floating profits and losses and any applicable credit.
- Used margin: The total margin required to maintain your open positions.
Your margin level changes as your equity or used margin changes.
Which positions are closed first?
The system starts with the position carrying the largest floating loss.
After each closure:
- Your account’s margin level is recalculated.
- Further positions close if necessary.
- The process continues until the margin level rises above the stop-out level or no open positions remain.
A stop-out does not necessarily close every position. If closing a position with a larger floating loss restores your margin level above the stop-out level, the remaining positions stay open.
Which positions are subject to stop-out?
All open positions on the account are subject to the applicable margin requirements and stop-out mechanism, including positions opened:
- Manually through your trading platform.
- Automatically through an Expert Advisor.
The stop-out assessment is based on the account’s overall margin level, rather than how a position was opened.
Why were my positions closed below a 20% margin level?
The 20% stop-out level is a trigger level, not a guaranteed execution level.
- Market execution: Positions close at the available market prices when the closing orders are processed.
- Rapid price movements: Your equity and margin level may continue falling during execution.
- Final margin level: Your recorded margin level may therefore be below 20% when a position closes.
