What is the Stop Out Level and how is it calculated?
PU Prime's stop out level is predefined at 20%. This level is a fixed threshold set by the broker.
The margin level, which is compared against the stop out level, is calculated using the following formula:
Equity/Margin × 100 = Margin Level
In this formula:
- Equity refers to the current account equity, which is the total account balance plus or minus any unrealized profits or losses from open positions.
- Margin refers to the total margin required to maintain open positions.
When the margin level falls to the stop out level of 20%, this triggers the stop out process, where positions are closed to prevent further losses.