XM offers traders the ability to place pending orders (also known as entry orders) which will initiate an open position at a price above or below the current market price.
“Stop-loss” Orders and “Take-Profit” or limit orders, can also cause trades to close automatically.
In situations where a position was closed automatically it may be due to either a stop-loss or take-profit order triggered.
However, only pending orders can cause a trade to open automatically, in addition to using trading robots.
There are four types of “Pending Order Types”, including:
- Buy Stop
- The Buy Stop is an order to “buy” long above the current market rate
- Buy Limit
- The Buy Limit an order to “buy” long below above the current market rate
- Sell Stop
- The Sell stop is an order to “sell” short below the current market rate
- Sell Limit
- The Sell Limit is an order to “sell” short above the current market rate
When the specified market price is reached, a pending order triggers a market order to execute and open a trade (establish a position).
Unlike Stops and Limits attached to market orders (which are stored on XM’s servers), these four “Pending orders” described above are only held (stored) on the users MT4 terminal (locally on their pc/machine) and therefore needs to be running and connected for them to be active.
If one or several trades close automatically, there could be several conditions that caused this.
Please verify if a stop or limit was placed on the trade and executed.
If this was not the case, and all trades have been closed, the account may have received a margin call (which liquidates trades to help prevent a negative balance), in cases where no more available margin was usable.