What can cause my positions to close automatically - FAQ | Pepperstone UK (2024)

FAQs

What can cause my positions to close automatically - FAQ | Pepperstone UK? ›

Your Stop Loss or Take Profit may have been triggered. If you no longer have enough equity in your account to support the trade's margin requirements, the automated stop-out system will start to close out your trades. If you are using an Expert Advisor, it may have sent an order to close your trade.

The most common reason for trades being closed unexpectedly is due to choosing stop or limit levels from the chart while using the incorrect price setting, resulting in the spread not being accounted for.

The "Close-only" mode is a special setting to prevent potential losses. When activated, clients can only close previously opened positions and cannot open new ones.

If a market trades over your limit level then you will be closed at the best available price at the time. This price will always be at your limit price or better, and is referred to as 'positive slippage. '

Closing a position refers to executing a security transaction that is the exact opposite of an open position, thereby nullifying it and eliminating the initial exposure. Closing a long position in a security would entail selling it, while closing a short position in a security would involve buying it back.

Your Stop Loss or Take Profit may have been triggered. If you no longer have enough equity in your account to support the trade's margin requirements, the automated stop-out system will start to close out your trades.

Receiving an “Only Close” error signifies that the trading session or the instrument is under close-only mode. During this period, you are only allowed to close previously opened positions but not open new positions.

The "market is closed" error message means you are trying to trade outside of the product's trading session. To check the trade hours of a product, please right-click on the product in the Market Watch window and select "Specification", which will open a new window with the trading hours of the selected product.

You aren't required to immediately meet this call with funding, but if you place any more day trades while under the call, your account will be restricted to closing transactions only. This means you can close existing positions but can't open any new ones.

Please note that your trades might be closed automatically due to Stop Out or when the Stop Loss and/or Take Profit order is triggered. A stop-out level is a specific point at which all the active positions are closed automatically because of a decrease in the margin level of the client.

Does close position mean sell? ›

Closing a position refers to the act of exiting an existing trade by executing an opposite trade. If you have a long position (bought an asset), closing the position means selling the same asset. Conversely, if you have a short position (sold an asset), closing the position means buying back the asset.

Simply put, closing a position in trading means exiting an open trade and taking profits or losses accordingly. This can be done either manually if the trader is tracking their trades closely, or automatically with the help of stop-loss orders that could limit the risks on both long and short trades.

A closed position is a trade that is no longer active and has been closed by a trader. To close a position, you need to trade in the opposite direction to when you opened it. For instance, if you take a long position on a stock, you would have to sell an equal amount of stock to close your position.

Closing transaction. Applies to derivative products. Buy or sell transaction that eliminates an existing position (selling a long option or buying back a short option). Antithesis of opening transaction.

When the Forex market is closed, open positions remain in your account, and no new trades can be executed until the market reopens. While the market is closed, price gaps can occur, leading to potential changes in the value of your positions when trading resumes.

By avoiding the use of stop-loss orders, traders may be able to hold onto trades for longer and potentially increase their returns. It is important to keep in mind that this approach is risky as it exposes traders to large loses if the market moves against them.

When an investor places a stop-loss order, they are essentially setting a safety net for their investment. If the market price of the stock drops to or below the pre-determined stop price, the stop-loss order is triggered, and the stock is automatically sold at the best available market price.

For example, we find that firms whose stock price movements are more concentrated around earnings announcement dates—suggesting that earnings announcements resolve substantial uncertainty and therefore a significant amount of information asymmetry tends to build up over the course of the quarter—tend to have trading ...

A Stop Loss is an instruction to close a trade at a specific rate or amount. If the market reaches your requested rate and you have lost the predetermined amount, the Stop Loss will trigger and automatically close your position.