Automatic closure of open orders can occur in the case of:
Stop out
The most common cause of orders closing automatically is stop out. Stop out is the automatic closure of orders when the margin level of a trading account hits 0%, the default stop out level for all trading account types.
When the margin level reaches 0%, stop out occurs since 0% is the stop out level .
Stop out closes multiple open orders, starting with the least profitable orders, until the margin level is returned above 0%.
Knowing how to calculate your margin level can help you anticipate a stop out:
Margin level = (Equity / Margin) x 100%
A trading account has the following:
- Equity = USD 50
- Margin = USD 10
So margin level = (50/10 x 100 = 500%) = 500%
- Loss drops equity to USD 6.
- Equity = USD 6
-
Margin = USD 10
So margin level = (6/10 x 100 = 60%) = 60%
Stop out doesn’t occur yet since the margin level is above 0% .
- Loss drops equity to USD 1 .
- Equity = USD 1
-
Margin = USD 10
So margin level = (1/10 x 100 = 10%) = 10%
Since the margin level is still above 0% , stop out still does not happen but the trading account will receive a margin call.
- Finally more loss drops equity to USD 0 .
- Equity = USD 0
-
Margin = USD 10
So margin level = (0/10 x 100 = 0%) = 0%
Stop out occurs as the margin level hits 0%, closing orders automatically until margin level is above 0%.
The stop out level for all trading account types registered under the Exness (KE) Limited is 20% by default. For stocks during daily break hours, the 0% stop out level is adjusted to 100%, resulting in automatically closing open stock orders.
Stop loss (SL) and take profit (TP)
Another possible reason is a type of pending order: stop loss (SL) and take profit (TP). These can automatically close orders when an order reaches a level of loss or profit set. Trailing stops are a type of pending order that change the level of SL as an order’s price updates. SL and TP don’t happen without being set by a user.
Close-only mode and pending orders
During close-only periods, pending orders will not execute even if the market price is reached. Instead, they will be automatically canceled by the system and you might receive an "Only Close" error. You can manually place these orders once the close-only mode has ended.