Forced closure of positions on Forex.

Sometimes, when trading Forex, positions are closed without the trader's initiative or because stop orders are triggered.

Forced closures are carried out by the broker through which the trade is conducted, and this type of trade termination often causes a lot of trouble for the trader.

Therefore, the main goal is to prevent such situations from arising. To do this, let's first understand the reasons why a broker might close your orders.

Besides outright fraud , dealing centers close their clients' positions for the following reasons:

• The transaction lifespan has expired - some brokers have this parameter, for example, a transaction cannot last longer than two weeks, so if you are a supporter of long-term trading, carefully read the terms of providing dealing.

• Margin Call - if the broker believes that the client's position is at risk and further provision of leverage may cause losses to the broker, he decides to forcibly close the position. Margin Call usually occurs if less than 30-40% of the deposit remains on the trader's account, the decision to close is made in each case individually.

• Stop out - automatic closing of a position, if for some reason the margin call was not used, the Stop out order is automatically triggered. Its size is 10-20%, that is, the trader has already lost 80-90% of his deposit.

The trader's task is to prevent the forced closure of positions, usually this is achieved through the use of stop loss, take profit and capital management on Forex .