Why a 100% Stop-Out Level Protects Client Funds
Difference Compared to a -10% Stop-Out —
Can you set the stop-out level to 20%? Other brokers use 20% or even 10%, right?
At Hirose, the stop-out level is set at 100% in order to protect client funds.
Why is Hirose’s stop-out level set at 100%?
While many FX brokers adopt relatively low stop-out levels such as 10% or 20%, Hirose deliberately sets its stop-out level at 100%.
The Purpose of Hirose’s Stop-Out Policy
- To stop losses before they become too large
- To reduce risks caused by emotional decision-making
- To preserve capital so that traders can act quickly when the next opportunity arises
As losses grow larger, traders tend to lose their ability to make calm and rational judgments.
Emotions begin to distort their view of the market, making it difficult to make sound decisions.
A 100% stop-out level prevents this negative cycle before it begins
Why Can’t Traders Cut Their Losses?
If I wait a bit longer, the price might recover.
This is the most dangerous judgment. As losses increase, people stop making decisions based on the market and start judging based on their own circumstances.
To succeed in trading, calm and objective judgment is essential.
However, as losses begin to mount, the way you think gradually changes.
The question shifts from “Which direction will the market move?” to “What is going to happen to me?
The losses continue to expand
「If I close the position now, I’m finished」
「I don’t have enough funds to cover the margin call」
「I won’t be able to pay back the debt」
「I just hope it will come back」
None of these have anything to do with whether the market goes up or down
“However, the greater the losses become, the more these ‘pressing personal concerns’ end up dominating decision-making.
100% Stop-Out: Ending the Cycle of Loss
Hirose maintains a 100% stop-out level to ensure positions are settled before losses escalate. By automating this process, we eliminate emotional bias and wishful thinking, providing a mechanical safeguard. This discipline protects not only your capital but also your decision-making integrity.
Protect your capital
By ensuring that sufficient funds remain available, traders can secure a foundation to resume trading with a calm and clear mindset.
Rather than starting from zero, capital is protected at a level that allows for recovery.
Protect judgment.
Small losses do not distort thinking. However, large losses take away the ability to view the market objectively.
The 100% standard keeps losses within a range that traders can still think about calmly and rationally.
Protect the opportunity to start again
Recovery requires capital.
If an account is almost completely wiped out, there is no next move.
The 100% standard ensures that the next opportunity remains within reach
What happens if you delay a stop‑out?
To succeed in trading, it is essential to be in a situation and environment where calm, rational judgment can be maintained at all times.
At Hirose, the stop‑out level is set at 100% in order to protect that environment.
When the stop‑out level is set too low, such as at 10%, losses can expand rapidly, making it easier for clients to lose their composure.
As a result, capital is more likely to be significantly reduced, making it difficult to continue trading over the long term.
Step 1:
Unrealized losses increase
- Think “it will recover soon”
- Continue to hold the position
Step 2:
Decision‑Making Ability Declines
- Larger losses lead to emotional instability
- Rational decision‑making breaks down
Step 3:
The Situation Worsens Further
- Opt to average down or let the position sit
- Losses grow at an accelerating rate
Step 4:
Forced Stop‑Out
- Margin Level declines
- Forced liquidation is triggered
Losses do not increase slowly; they accelerate, and judgment does not decline gradually—it drops all at once.
As a result, trading capital diminishes more rapidly, making it difficult for clients to continue trading.
And then, the position is forcefully closed at the worst possible timing.
That is why it is important to create an environment in which clients can continue trading over the long term.
Stop‑out at 10% vs. Stop‑out at 100%
— The difference is whether you can survive or not —
Even under the same account conditions, differences in stop‑loss criteria create a substantial gap in the amount of loss that can be tolerated.
Trader AStop‑out: 100%
I always choose an account with a 100% stop‑out.
I think a 100% stop‑out is safer.
If it’s set at 100%, your funds won’t be completely wiped out, so you’ll still have the next trading opportunity.
Trader BStop‑out: 10%
Hmm, is that really true? With a 100% stop‑out, you get forced out so quickly it feels disadvantageous.
If you could endure up to a 10% stop‑out, you’d still have a chance for a reversal—letting that go seems like a shame.
Even in the same market conditions, the amount of capital you have left can be completely different.
This difference is not just a matter of numbers.
It is the crossroads between being able to recover—or being left with an irreversible loss.
If we trade under the same conditions, how will the results differ?
Expecting the price to rise, I opened a long (buy) position, but the market suddenly fell.
Person A trades with a 100% stop‑loss level, while Person B trades with a 10% stop‑loss level.
Using the following account settings as an example, we will compare two different stop‑loss thresholds.
Equity
＄7,500
Total Account Equity
Required Margin
$6,300
Minimum Amount Required
to Maintain a Position
Margin Level
120%
Equity÷Required Margin×100
The moment the market
suddenly moved
| Item | 100% Stop-Out Level | 10% Stop-Out Level |
|---|---|---|
| Initial Equity | $7,500 | $7,500 |
| Required Margin | $6,300 | $6,300 |
| Stop-Out Trigger Level | $6,300 | $630 |
| Maximum Loss Allowed | $1,200 | $6,870 |
|
Remaining Balance After Stop-Out |
$6,300 | $630 |
|
Amount Protected by 100% Rule |
$5,670 more protected (100% stop-out) | |
This data is provided for illustrative purposes only.
Trader A
Stop-out 100%
Balance：$6,300
Funds remain available for
immediate trading
The loss amounted to −$1,200, but there is still $6,300 left in the account.
I was frustrated when the stop‑out was triggered, but now I can start trading again!
I’ll use this remaining capital to make a comeback.
Trader B
Stop-out 10%
Balance：$630
Nearly a total loss.
Recovery is difficul
I ended up thinking, “If I can just hold on a little longer, the market might reverse and save me…”
But now there’s almost no capital left, so I can’t even participate in the next trade.
When the market moves sharply, even a price change of just a few dollars can lead to vastly different outcomes.
Whether the stop‑out level is set at 100% or 10%, a stop‑out can occur—but what matters most is not only where the stop‑out happens, but how much capital remains afterward.
In trading, the most important thing is survival—the ability to stay in the game and participate in the next opportunity.
100% Stop-Out × A Safely Engineered Trading Environment
In Forex trading, the most important thing is not “making profits,” but continuously protecting your capital.
That is why Hirose adopts a 100% stop‑out level—an overwhelmingly safer mechanism—instead of the 10% stop‑out that is commonly used in overseas FX trading.
Automatic Stop‑Out – Solid Protection for Your Funds
With a 100% stop‑out, your positions are closed early to prevent large losses.
It acts as a shield that protects your valuable funds from sudden market panic.
Emotional stability leads to better performance.
When losses continue, traders begin to fear that their money might be reduced to zero, and decisions become driven by emotion rather than the market.
By eliminating those emotions and maintaining calm, objective judgment, anxiety decreases, mistakes are reduced, and trading performance becomes more consistent.
You can start over—again and again.
If you lose under a 10% stop‑out rule, there is virtually no capital left in your account.
But with a 100% stop‑out, capital is preserved.
And with that remaining capital, you can immediately aim for the next trading opportunity.
Protect Your Capital and Start Again — Hirose’s “100% Stop‑Out”
A 100% stop‑out is a powerful safety mechanism designed to ensure that client funds are not reduced to zero.
With low stop‑out levels such as 10%, a sudden market move can cause losses to escalate instantly, pushing the account into a dangerous state with little room for recovery.
In contrast, a 100% stop‑out automatically halts positions before losses become excessive.
By preserving important capital, it also provides emotional breathing room—allowing traders to regroup, regain composure, and maintain the capacity to challenge the market again.
Start safe trading with Hirose.
Click here to open your account !