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

FAQs

Why does my trade automatically close? ›

A trade may close automatically when the Stop Loss or Take Profit order you set is triggered, or when its contract expires. Stop Loss and Take Profit are risk management tools that add an extra layer of protection to your investment.

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.

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.

A closed position is a trade that is no longer active and has been closed by a trader.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 will have to sell an equal amount of stock to close your position.

If you hold one or more positions and there are insufficient funds in your account to maintain your minimum required margin, your positions will be automatically closed. This prevents you from incurring losses beyond the amount you have deposited.

The exchanges (ie. Nasdaq and NYSE) have automated checks in place to cancel an order if the price you entered is too far below the current market price that it looks like a mistake.

Key Takeaways

Closing a position refers to canceling out an existing position in the market by taking the opposite position. In a short sale, this would mean buying back the security, while a long position entails selling the security.

The 'Close only' mode is a special setting preventing clients from potential losses. In this mode, you can only close previously opened positions and you can't open new positions.

Liquidation/Closing Only

Restricts trades to either liquidating or position-closing trades only. This rule will be met if an order would result in establishing a new or increasing an existing position.

To protect the clients' stocks and shares and their money in case their broker goes bankrupt, SEBI's Investor Protection Fund (IPF) was created. Members of the IPF can get up to 15 lakhs per broker in compensation if they are qualified.

What does it mean when a trade closes? ›

What Is the Close? The close is a reference to the end of a trading session in the financial markets when the markets close for the day. The close can also refer to the process of exiting a trade or the final procedure in a financial transaction in which contract documents are signed and recorded.

Retail forex brokers do NOT trade on behalf of their customers. They are dealers. A retail forex broker trades on its own account by taking the opposite side of its customers' trades.

The position has been filled. There's already a selection of candidates moving forward in the application process. You didn't meet the qualifications for the position. The employer has removed the position.

Closed position - The partners face each other in this position. The man's left hand holds the woman's right hand. Palms are touching, and fingers and thumbs are loosely clasped around each other's hands. The man's right hand rests on the woman's back, cradling her left shoulder blade.

Sometimes you may have open positions that you don't need to fill any more. It's important to use the Close Position action on these positions to maintain accurate vacancy rates. Note: Once a position is closed, you can no longer fill it. You must create another position to replace it.

By having set hours for trading, stock exchanges ensure that there is concentrated liquidity between their opening and closing bells, rather than sporadic trades throughout the day on a 24-hour basis.

During this period the top executives of the Company say the spokespersons are refrain from doing any public announcements and to conduct any investor/analyst call with institutional investors, analysts and the media. The purpose of trading window closure is to prohibit trading on the basis of inside information.

There are a couple of reasons why the stock market closes, and many of them involve four aspects: volatility, tradition, sleep, and n risks. As you can imagine, a threadlike volume can lead to major risk, since most institutions will be closed and most retail traders are sleeping, so, there will be low liquidity.