---
title: "Stop-out - Meaning & GFN's Figure - Get Funded Now"
description: "The automatic closing of positions when equity falls below the level needed to maintain them. On a prop account the phrase is also used loosely for…"
url: "https://getfundednow.com/glossary/stop-out"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/stop-out"
  pt-BR: "https://getfundednow.com/pt-br/glossary/stop-out"
  fr: "https://getfundednow.com/fr/glossary/stop-out"
  it: "https://getfundednow.com/it/glossary/stop-out"
  de: "https://getfundednow.com/de/glossary/stop-out"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Trading mechanics

# Stop-out

The automatic closing of positions when equity falls below the level needed to maintain them. On a prop account the phrase is also used loosely for hitting the maximum drawdown floor.

GFN’s figure

On GFN accounts the drawdown floor is the level that matters: $92,000 on a $100,000 2 Step account, fixed, and $95,000 on Instant before it trails upward.

In detail

## Stop-out, explained

The two meanings are worth separating. A platform stop-out is a margin mechanism; a drawdown stop-out is a rule breach, and only the second one ends the account.

Trading against either as though it were a stop loss is the same mistake in two forms: both are the system's last resort, not a risk plan.

[Rules handbook](https://getfundednow.com/rules) · [More trading mechanics](https://getfundednow.com/glossary/category/mechanics)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Margin call](https://getfundednow.com/glossary/margin-call) - A warning issued when equity falls to a set percentage of the margin required for open positions. It signals that the account is close to being unable to support the trades it holds.
- [Drawdown floor](https://getfundednow.com/glossary/drawdown-floor) - The account level at which a maximum drawdown breach is recorded. It is the starting balance minus the drawdown allowance, expressed as a dollar figure rather than a percentage, and it is the single number to trade against.
- [Margin](https://getfundednow.com/glossary/margin) - The portion of account equity set aside to hold an open position. It is a deposit against the position rather than a cost, and it is returned to free margin when the position closes.
- [Hard breach](https://getfundednow.com/glossary/hard-breach) - A violation serious enough to fail or terminate the account immediately. Exceeding the daily loss limit or the maximum drawdown is the usual cause, and a later recovery in the market does not reverse it.
- [Maximum drawdown](https://getfundednow.com/glossary/maximum-drawdown) - The total loss an account may take before it is failed. Expressed as a percentage of the starting balance, it sets a floor: touch it and the account breaches, whatever the account has made up to that point.

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Source: https://getfundednow.com/glossary/stop-out
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt