Forced closing of positions on Forex.

Sometimes when trading Forex, positions are closed not at the initiative of the trader or because stop orders are triggered.

Forced closure is carried out by the broker through whom trading is conducted; usually this option for completing a transaction brings a lot of trouble to the trader.

Therefore, the main task is to prevent such situations from arising; to do this, we will first understand for what reasons the broker can close your orders.

dealing centers usually close their clients’ positions for the following reasons:

• The transaction's lifetime has expired - some brokers also have this parameter, that is, for example, a transaction cannot last more than two weeks, so if you are a supporter of long-term trading, carefully read the terms and conditions of dealing.

• Margin Call - if the broker believes that the client's position is at risk and further provision of leverage could bring losses to the broker, he decides to force the position to be closed.

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 activated, 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 forced closing of positions; this is usually done through the use of stop loss, take profit and money management in Forex .