Why was my position closed automatically (Stop Out)?

At LBX, a Stop Out occurs when your account equity falls to a certain percentage of your used margin. At that point, the system will automatically start closing your open positions to protect your account from falling into a negative balance.

The Stop Out level depends on your account type:

• Standard and Zero Accounts → Stop Out at 30%
  

• Boost Account (with bonus) → Stop Out at 80%
  

This typically happens when the market moves against your position and there isn’t enough margin left to maintain your trades.

What is a Stop Out?

A Stop Out is an automatic risk-control mechanism that closes your positions once your equity falls below the required margin level.

• In a Standard/Zero Account, this happens at 30% of used margin.
  

• In a Boost Account, this happens earlier, at 80% of used margin

When Stop Out is triggered, the system will start closing your most loss-making positions first, protecting the rest of your account.

Example of Stop Out in a Standard Account:

Let’s say you have an open position with $1,000 in margin and your equity falls to $300 (30% of your used margin). If the market continues to move against your position and your equity drops further, the system will begin closing positions to prevent further losses.

For example:

• You have $1,000 in used margin.
  

• Your equity drops to $300, which is 30% of your used margin.
  

• The system automatically closes your positions to protect your funds.

Example of Stop Out in a Boost Account

• You have $1,000 in used margin.
  

• Your equity drops to $800, which is 80% of used margin.
  

• At this point, Stop Out occurs, and the system starts closing losing positions.
  

Because the Stop Out level is higher (80% vs. 30%), there is less room for drawdown in a Boost Account. It is important to manage trades more carefully to avoid early position closure.

Important: Bonus funds and Stop Out

Please keep in mind that bonus funds are not included in the equity calculation for Stop Out.
The bonus is intended for margin purposes only and is not tradable as equity. As a result, it does not contribute to the available funds used to prevent Stop Out.

Only your real funds are considered in the Stop Out calculation.

How to prevent a Stop Out:

1. Monitor your margin regularly: Keep an eye on your margin level and don't let it drop too low. You can view your margin level on your LBX terminal to stay informed of any risks.

2. Set stop-loss orders: A stop-loss helps limit losses if the market moves against you. Always set a reasonable stop-loss level when entering trades.

3. Increase your account balance: To support your open positions, deposit more funds if you notice your margin is decreasing, thus avoiding a possible stop out.

4. Use appropriate leverage: While leverage can amplify profits, it can also increase the risk of a stop out. Be careful not to over-leverage and ensure you can handle any market fluctuations.

5. Diversify your positions: Avoid investing all your funds in a single trade. Diversifying your positions can reduce overall risk and prevent a stop out from affecting all your trades at once.

Additional tips for managing risk:

• Consider placing smaller trades to manage your margin more effectively.

• Monitor market volatility, as sudden price movements can put pressure on your margin.

By following these strategies and carefully managing your margin, you can minimize the risk of a Stop Out and protect your account.

If you have any questions or need assistance, please reach out: support@lbx.com
Or submit a ticket via our Help Desk Portal

We’re always here to assist you!