Define: Stopped Out

UK Accounting Glossary

Definition: Stopped Out



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Full Definition of Stopped Out


An investor is stopped out of a position when a position is liquidated due to a stop order or a stop-limit order. A stop or stop-limit order eliminates emotions of fear or greed when an order is automatically stopped out at a predetermined price. An investor may be stopped out of a position with a pre-determined profit or the investor may be stopped out of a position with a planned and acceptable loss. In the case of a long position, an investor is stopped out through the sale of a stock. In the case of a short position, the investor is stopped out through the purchase of off-setting shares. For those investors who correctly employ stop and stop-limit orders, being stopped out of a position can be an important part of an overall strategy.


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Stopped Out. PayrollHeaven.com. Retrieved April 03, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/stopped-out/

Definition Sources


Definitions for Stopped Out are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February 2020.