What does “Close Only” mean in stock trading?
The ongoing crisis has become an excellent opportunity for many traders to show their professional skills and make good money.
But not everything always goes according to plan; you can often find messages from a broker in your email stating that trading on a certain asset has been switched to “Close Only” mode.
Close Only – translated from English means “Closing Only”, that is, you can no longer open new transactions for a certain asset.
For example, due to increased volatility and a strong widening of spreads, trading on the XAU asset has been switched to Close Only mode.
After you receive such a message, you cannot open a new gold transaction, but only close existing ones. Surprisingly, this is not such a bad option compared to when trading stops completely.
What to do with already open transactions?
It all depends on the market situation itself; if it develops favorably for you, then you can postpone closing them. In the same case, if the trend goes against your positions, it is better not to delay and close existing orders for XAU.
Because the next step after Close Only may be to stop trading and the losing order will be closed at the first quote after the market opens. In such a situation, even set stop loss.
It should be noted that the transfer of trading to this mode applies only to a specific asset, in our example it is XAU; for all other assets, trading can be carried out as usual.
You will know that trading is allowed by receiving a message with the words “Full Trade”.