A stop out occurs when a trader's account equity falls below a certain level, usually the margin requirement, and the broker closes out some or all of the trader's positions to prevent further losses. A stop out is a forced liquidation of positions, and it happens automatically when a trader's account equity reaches the stop out level.

At Clarity you will be automatically stopped out when your equity balance falls to 50% of your margin. This means that all of your positions in the Margin account will be closed out to prevent further losses. It is important to note that this is automatic and you will not receive a phone call prior to the stop out. As a warning Clarity will send out a margin call email when your equity balances falls to 100% of your margin and then again at 80%, when you receive these mails you can take action by depositing additional funds to avoid a stop out.