Why does a trade closes on its own?

<p id="isPasted">A trade can close on its own due to pre-set risk management orders, insufficient funds in the account, or specific broker and exchange rules.&nbsp;</p><p><strong>Primary Reasons for Automatic Trade Closure</strong></p><ul><li>Stop-Loss (SL) and Take-Profit (TP) orders: These are automated orders you set to close a position when the price reaches a specific limit of loss (Stop-Loss) or profit (Take-Profit). The trade closes automatically to manage risk or secure gains without manual intervention.</li><li>Margin Stop-Out: In leveraged trading, if a losing position causes your account's equity to fall below a predetermined maintenance margin level (the "stop-out level"), your broker will automatically begin closing positions to prevent your account balance from going negative.</li><li>Contract Expiration: Certain trading instruments, such as Contracts for Difference (CFDs) on commodities or indices, have an expiration date. If you hold a position until this date, it will be automatically closed by the broker unless a rollover feature is enabled. </li></ul><p><strong>Other Potential Reasons</strong></p><ul><li>Expert Advisors (EAs) or Trading Bots: If you are using an automated trading system, it might trigger a command to close the trade based on its internal strategy and the market conditions it is programmed to react to.</li><li>Broker or Exchange Rules: During periods of extreme market volatility or for regulatory compliance (such as preventing insider trading during a "trading window closure" for specific company news), a broker or exchange may temporarily halt trading or close positions to maintain market integrity.</li><li>Insufficient Funds for Fees: Not accounting for broker commissions and fees can sometimes lead to an account balance drop that triggers a forced closure, especially in leveraged accounts. </li></ul><p>To avoid unexpected closures, it's essential to understand your broker's specific policies regarding margin calls and stop-out levels, and to carefully manage your own risk with appropriate Stop-Loss and Take-Profit orders on all trades.&nbsp;</p>

<p id="isPasted">A trade closes automatically primarily due to preset orders (Stop Loss or Take Profit), a Stop-Out triggered by insufficient margin, or contract expiration.&nbsp;</p><p><strong>1. Forced Liquidation (Stop-Out)</strong></p><p>The most common reason for unexpected closure is a Stop-Out. This happens when your account's Margin Level drops below a specific threshold (often 50% or lower) set by your broker.&nbsp;</p><ul><li>Purpose: It acts as an "emergency brake" to prevent your account from falling into a negative balance.</li><li>Trigger: If your losses grow so large that your remaining equity can no longer support your open trades, the broker's system will automatically close your losing positions one by one. </li></ul><p><strong>2. Triggered Orders</strong></p><ul><li>Stop Loss (SL): Automatically closes the trade at a pre-set price to limit your losses if the market moves against you.</li><li>Take Profit (TP): Automatically exits the trade once a specific profit target is reached, securing your gains.</li><li>Trailing Stop: A dynamic Stop Loss that follows the price as it moves in your favor but remains fixed if the price reverses, eventually closing the trade if the trend changes. </li></ul><p><strong>3. Automated Systems &amp; Contracts</strong></p><ul><li>Expert Advisors (EAs): If you are using a trading robot or EA, it may have been programmed to close trades based on specific time, profit, or loss criteria.</li><li>Contract Expiration: Instruments with fixed dates, such as futures or certain CFDs (indices, oil, gas), will automatically close on their expiration date unless an auto-rollover feature is enabled.</li><li>Negative Swap/Rollover: In rare cases, mounting daily interest fees (negative swaps) could eventually deplete your margin enough to trigger a Stop-Out. </li></ul><p><strong>How to Verify Why It Closed</strong></p><ul><li>You can usually find the reason for a closure in your platform's Account History tab:&nbsp;</li><li>A Stop-Out often shows a comment like [stopout] or [so].</li><li>Triggered orders will show the specific SL or TP levels in the trade details.</li><li>EA closures may leave a specific comment from the automated script. </li></ul>