Why does a trade closes on its own?

<p>When a Stop Loss or Take Profit order is triggered, or when the contract expires, a trade may automatically close. The Stop Loss and Take Profit tools to add an extra layer of protection to your investments.</p>

<p>A trade can close on its own for a variety of reasons, including reaching a certain profit or loss level, reaching a certain time limit, or because of a margin call. For example, if a trader has set a take profit level for their trade, the trade will automatically close when the market price reaches that level, resulting in a profit for the trader. Similarly, if a trader has set a stop loss level, the trade will automatically close when the market price reaches that level, resulting in a loss for the trader. Additionally, if the margin level in the trading account falls below the minimum level required by the broker, the broker may close the trade to protect their own interests.</p>

<p>Trades close automatically when the Stop Loss or Take Profit order is triggered or the platform can close your positions automatically if you have a losing position and not enough funds in your account to guarantee it, in other words, if there isn't enough margin in your account to secure your trades. This protects you from losing more money than your deposit. I would suggest practicing your strategies on your demo account, learning and observing which strategy suits you the best, and then invest your money in the live trades.</p>

<p id="isPasted">There are several reasons why a trade might close on its own, and it's important to understand why to manage your financial risks effectively. Here are some common possibilities:</p><p><strong>Pre-set Orders:</strong></p><ul><li><p>Stop-Loss Order:&nbsp;This order automatically closes your position when the price reaches a specific level you set,&nbsp;which acts as your maximum acceptable loss.</p></li><li><p>Take-Profit Order:&nbsp;This order closes your position when the price reaches a specific level of profit you set,&nbsp;securing your desired gain.</p></li><li><p>Trailing Stop-Loss:&nbsp;This order adjusts your stop-loss level dynamically as the price moves in your favor,&nbsp;locking in some profit while offering protection against a downturn.</p></li></ul><p><strong>Platform or Broker Settings:</strong></p><ul><li><p>Margin Call:&nbsp;If your account value falls below a certain threshold (margin requirement) due to losses,&nbsp;your broker might automatically close your positions to minimize further losses.</p></li><li><p>Inactivity:&nbsp;Some platforms might have expiration dates for open positions,&nbsp;automatically closing them if no action is taken within a specific timeframe.</p></li><li><p>Technical Issues:&nbsp;Occasionally,&nbsp;system glitches or platform errors can lead to unintended position closures.</p></li></ul><p><strong>Market Mechanics:</strong></p><ul><li><p>Liquidity Issues:&nbsp;In thinly traded markets,&nbsp;it might be challenging to exit your position at the desired price,&nbsp;leading to partial or full closure at the available bid/ask prices.</p></li><li><p>Execution Costs: Slippage, the difference between the expected and actual execution price, can sometimes lead to a closure close to your stop-loss level even if the market price didn't reach it exactly.</p></li></ul>