Stop Out Clause Samples

A Stop Out clause defines the conditions under which a broker will automatically close a trader's open positions to prevent further losses when the account equity falls below a specified threshold. In practice, this clause is commonly used in margin trading, where the broker monitors the trader's account balance and, if losses reduce the equity to a critical level (such as a percentage of the required margin), the broker will begin closing positions starting with the most unprofitable. The core function of the Stop Out clause is to limit the broker's risk exposure and prevent the trader's account from falling into a negative balance, thereby protecting both parties from excessive financial loss.
Stop Out. 4.1 The Company has the right (but is not obliged) to forcibly close the Client's open positions without prior notification of the latter, if the current state of the trading account (equity) is less than 15% of the required margin to maintain open positions. 4.2 The current state of the account is controlled by the server, which, if condition 4.1 is fulfilled, generates an order for the forced closing of the position (stop out). 4.3 If the Client has several open positions, the position with the largest floating losses is closed first. 4.4 The Company guarantees that after the last position is closed, the trading account will have a balance in the range from 0 to 15% of the margin required to maintain this last forcedly closed position (limiting the Client's risk).
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Stop Out. The Company is entitled to close the Client’s positions without the consent of the Client or any prior notice if the margin level drops below 50% for all accounts, except of Crypto accounts which is at or below 80%. Margin level is monitored by the server whereby it generates the Stop Out instruction to close a position without prior consent. Stop Out is executed at the current Quote following the priority of the queue. Once the position has been closed the relevant record appears in the server-log file with “Stop Out”. If the Client has several Open Positions the first position which must be placed in the queue in order to be closed is the one with the highest Floating Loss. When the last Open Position is closed and there is no Price Gap or Price Gap on the Market Opening the Company shall guarantee that the execution of Stop Out for the last position will not result in Negative Equity (i.e., below zero) on the Client’s trading account. Negative balance protection is provided to all accounts held by the Company. In case the client balance goes negative after all positions close, the Company will cover the negative balance and will not request from Clients to cover the required amount. The Company reserves the right to close any Open Positions of the Client without a warning in the event of a dispute.
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Stop Out. 12.1. Your Margin Level is a safety level that indicates whether you have enough funds to support your Open Positions. Your Margin Level will be monitored by the Server. 12.2. If your Margin Level falls below 100%, you will not be able to open a new Position. 12.3. If your Margin Level is less than the level of the Stop Out specified on the Trading Platform or visible on our website as updated from time to time, we will Stop Out (i.e., automatically close your Open Positions with the biggest Loss) to bring your Margin Level to the required threshold or above. This will be done with no prior Written Notice. 12.4. A Stop Out is a safety mechanism to protect you from big Losses due to sudden market movements. The Stop Out instruction is generated by the Server. You should understand that your Open Positions may be closed at a price that is different from the Quote generated by the Server in its Stop Out instruction. 12.5. Stop Outs will be triggered at the price point at which we hedged your trade or at the price available at the moment the Order is executed. 12.6. If a Stop Out has resulted in a negative Balance on your Trading Account, general negative balance protection rules found in the Client Agreement will apply. If this negative balance is as a result of your illicit activities, you will be liable for the loss and must pay any amount due immediately. We may compensate this loss from the funds in any of your other accounts held by us. 12.7. We may close your Open Positions without your consent or any prior notice if your Equity is less than the Level of Stop Out specified on our Website or Platform or where relevant, via our Publishing Channels. 12.8. Once the Position has been closed, the relevant record appears in the Server Log File with the “Stop Out” remark where applicable. 12.9. We may, with no prior Written Notice, change the Stop Out and Margin Levels.
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Stop Out. 6.1 By accepting this Agreement, the Client irrevocably acknowledges, accepts and agrees that the Company is entitled to close the Client’s Open Positions without the consent of the Client or any prior notice if the Equity is less than the Level of Stop Out specified at Trading Terms on the Company’s Webpage. 6.2 Margin Level shall be monitored by the Server. The Client acknowledges, agrees and consents hereto that subject to Clause 6.1 above the Server shall generate the Stop Out Instruction to close a position.. Stop Out shall be executed at the price at which the Company has hedged the trade. The Client agrees that the price at which the Order is executed may be different from the Quote at which the Stop Out Instruction was generated. The Client acknowledges, agrees and consents hereto that the Company has the right, in its sole and absolute discretion, to adjust this price to reflect the cost(s) of hedging. Stop Out shall be executed at the current price available at the moment the order is executed. The Client acknowledges, agrees and consents hereto that in the cases where the Stop Out is executed by the Company, the Stop Out shall be executed at the price at which the Company has hedged the position and the price shall be adjusted by the Company, in its sole and absolute discretion in order to reflect such hedging cost(s). 6.3 The Client acknowledges that the execution price may differ from the Quote at which the Stop Out Instruction was generated dispute. 6.4 Once the position has been closed the relevant record appears in the Server Log File with the “Stop Out” remark. 6.5 If the Client has several Open Positions, the first position which has to be placed in the queue in order to be closed is the one with the highest Floating Loss. 6.6 The Company has the right to close any Open Positions of the Client without a warning if it is required in accordance with the Dispute process. 6.7 Please bear in mind, that the Company may at its sole discretion change within the hour before the close of the trading session on every Friday or at any other given time, the Stop Out and Margin Call levels from 50% to 100% and from 80% to 130% respectively, for all ECN MT4 accounts. Moreover, kindly note that the Company may extend these amendments for as long as it deems necessary after the market opening, by providing the Client with prior written notice.
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Stop Out. If no action is taken by the customers to either reduce their open positions, or transfer funds into their trading account in time for it to be cleared, some or all existing positions will start to be automatically closed out without further reference to you, when the Stop Out Level is reached. Similar to the Margin Call Level, your Stop Out Level may differ depending on your customer trading group.
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Related to Stop Out

  • Stop Transfer The Securities are restricted securities as of the date of this Agreement. Neither the Company nor any of its Subsidiaries will issue any stop transfer order or other order impeding the sale and delivery of any of the Securities at such time as the Securities are registered for public sale or an exemption from registration is available, except as required by state and federal securities laws.

  • Lost Keys, Lock Outs The Resident will be responsible for the cost of replacing lost keys (e.g., room key, mailbox key, etc.) at a cost determined by the Manager, to a maximum of $20.00 per key. If the Resident is locked out of the Resident’s Room, the Resident will pay a fee for letting the Resident into the Room, to a maximum of $5.00, or will be provided with a temporary key to be returned immediately after use. Failure to return a temporary card in the time allotted will result in a replacement fee to a maximum of $20.00.

  • Stop Payments The Fund hereby authorizes the Transfer Agent to stop payment of checks issued in payment of dividends, but not presented for payment, when the payees thereof allege either that they have not received the checks or that such checks have been mislaid, lost, stolen, destroyed or, through no fault of theirs, are otherwise beyond their control and cannot be produced by them for presentation and collection, and the Transfer Agent shall issue and deliver duplicate checks in replacement thereof, and the Fund shall indemnify Transfer Agent against any loss or damage resulting from reissuance of the checks.

  • If there is a permitted secondary offering (1) If the Issuer is an emerging issuer and you have sold in a permitted secondary offering 10% or more of your escrow securities, your escrow securities will be released as follows: For delivery to complete the IPO All escrow securities sold by you in the permitted secondary offering 6 months after the listing date 1/6 of your remaining escrow securities 12 months after the listing date 1/5 of your remaining escrow securities 18 months after the listing date 1/4 of your remaining escrow securities 24 months after the listing date 1/3 of your remaining escrow securities 30 months after the listing date 1/2 of your remaining escrow securities 36 months after the listing date your remaining escrow securities *In the simplest case, where there are no changes to the remaining escrow securities upon completion of the permitted secondary offering and no additional escrow securities, the release schedule outlined above results in the remaining escrow securities being released in equal tranches of 16 2/3%. (2) If the Issuer is an emerging issuer and you have sold in a permitted secondary offering less than 10% of your escrow securities, your escrow securities will be released as follows: For delivery to complete the IPO All escrow securities sold by you in the permitted secondary offering On the listing date 1/10 of your original number of escrow securities less the escrow securities sold by you in the permitted secondary offering 6 months after the listing date 1/6 of your remaining escrow securities 12 months after the listing date 1/5 of your remaining escrow securities 18 months after the listing date 1/4 of your remaining escrow securities 24 months after the listing date 1/3 of your remaining escrow securities 30 months after the listing date 1/2 of your remaining escrow securities 36 months after the listing date your remaining escrow securities *In the simplest case, where there are no changes to the remaining escrow securities upon completion of the permitted secondary offering and no additional escrow securities, the release schedule outlined above results in the remaining escrow securities being released in equal tranches of 16 2/3% after completion of the release on the listing date.

  • Alcoholic Beverages Costs of alcoholic beverages are unallowable.