Question
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Why does a trade closes on its own?
9 Answers
<p>A trade may close automatically when the Stop Loss or Take Profit order you set is triggered, or when its contract expires.</p>
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<p>So there are 3 possible reasons. 1 you didn't have enough margin in the account to hold the positions hedged or not. 2 you could have thought you had the hedge on correctly but didn't ( done that myself). 3 your broker could have either made a mistake or playing games.</p>
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<p>Market volatility went way up. Even a perfectly hedged position loses money when volatility goes up.</p>
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<p id="isPasted">When your Equity is below a threshold percentage of your Margin Used, you have reached the Stop Out Level.</p><p>In this case, your broker will automatically close out your unprofitable trades until your Margin Level is back above the Stop Out Level.</p>
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<p>A trade closes automatically when a Stop Loss Order or Take Profit order is triggered. Your positions will be automatically closed if you have a losing trade and not enough funds in your account to cover it, or if there is not enough margin available to cover your trades. In this way, you can protect yourself from losing more than your deposit. I recommend practicing your strategies on a demo account, discovering which strategy suits you the best and then investing your money in live trades.</p>
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