Stop-Out Sequence

The stop-out sequence is the order in which a broker liquidates open positions once margin level falls to the stop-out threshold. It is neither simultaneous nor your choice: most servers close the largest floating loss first, recheck the margin level, then close the next, repeating until the account is back above the threshold. The consequence is that the position you most wanted to keep can be the one taken, and a hedge can lose one leg while the other stays open and suddenly unprotected. Some firms close the largest position by volume instead, and a few simply work through by ticket order — the rule sits in the terms of business, not on the platform. Knowing which one applies is what decides whether reducing size yourself beforehand beats letting the server choose for you.