What is the stop out level in forex trading?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by our editorial team (Marcus Weber CFA, Sofia Lindgren FRM, Daniel Ferretti LLM).
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Related questions
What is a margin call in forex and how do I avoid one?
A margin call is a warning from your broker that your account equity has fallen below the required maintenance margin. If you do not add funds or close losing positions, the broker will begin closing positions automatically (stop out). To avoid margin calls, risk only 1-2% per trade and use a stop loss on every position.
What is negative balance protection and do all EU brokers offer it?
Negative balance protection guarantees that retail forex traders cannot lose more money than they deposit. ESMA rules make it mandatory for all EU-regulated brokers serving retail clients. This means extreme market events like the 2015 Swiss franc shock cannot leave you owing money to your broker.
What are the ESMA leverage limits for retail forex traders?
ESMA limits retail forex leverage to 30:1 on major currency pairs, 20:1 on minors and major indices, 10:1 on commodities and non-major indices, 5:1 on individual equities, and 2:1 on cryptocurrencies. These limits apply to all EU/EEA regulated brokers since 1 August 2018.