Forex closing a position. What is the most profitable forex system

Buying and selling a particular pair of currencies opens a trading position. In order to secure income due to the difference in rates, the trader must close this position on time. When closing a transaction on Forex, the opposite operation is performed in relation to the first one.

For example, if the first transaction was the purchase of a lot on EUR/USD, then to close the transaction it is necessary to sell one lot of a similar pair of currencies. In the client terminal there are: closing several counter positions, closing a transaction with a counter position, as well as closing a single position.

How to close a trade on Forex (one)

Closing single open position in automatic mode, it is carried out when prices and values ​​of take profit and stop loss orders are equal. It is important to note that when closing a long-term transaction, the Bid price must be equal to the value of the levels of Take Profit and Stop Loss orders, and when closing a short-term transaction, the value of the above levels must be equal to the value of the Ask price.

To close a position manually, you need to perform the following actions: the context menu command of an open transaction (terminal - trade) or double-click on the same position with the left button of the computer mouse. The client terminal allows players to partially close a transaction. To do this, in the “volume” field, before clicking the “close” button, you need to indicate the value of lots - less than that of the open position. The deal can be closed by the broker. For example, this happens at the stop-out level set by the broker.

Historical charts in the trading terminal are built only based on Bid prices. In this case, some of the displayed orders are built at Ask prices. In order to enable the display of the Ask price of the last bar, the trader must check the box next to the line “Show Ask line” in the terminal settings.

How to close a counter trade in Forex

A counter position is an opposite position to the same currency pair. If among the open transactions there are several (or one) counter ones, then the selected position can be closed along with the counter one. To do this, the trader must perform the following actions: open the “order” window, then select “type - close with an opposing position.” At the same time, it will appear at the bottom of the window full list counter positions, you should select the desired deal from among them. After this, the “close” button is activated, it makes it possible to complete two transactions at the same time.

How to close a Forex trade if opposing positions had an unequal number of lots. IN in this case only one of them remains open. The number of lots (volume of a given position) will be the difference between closed positions, and the opening price (long/short) and its direction will be the larger of the closed positions (by volume).

Closing multiple opposing positions

Allows you to close several transactions on one instrument at once. To carry out this operation, you also need to open the “order” window, select “type – multiple closing positions”. In this case, a complete list of counter positions will appear at the bottom of the window and the “multiple closing of counter positions” button will be activated. Closing occurs in accordance with the time of opening transactions, in pairs, according to the algorithm for closing counter transactions.

If the difference in the sums of the volumes of opposite transactions is not equal to zero, then as a result of the operation a new transaction will be opened - with a volume that will be equal to this difference. The newly opened transaction will continue to participate in the multiple closing process, but in strict accordance with the time when it was opened. And in this way - until all positions are closed or until the last resulting position is opened.

After closing counter transactions in the “terminal” window and the “account history” tab, the trader will see the corresponding entries. The “comment” field will display service information about the closure of all opposing positions.

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My article will be interesting and especially useful for novice traders; I hope it will help them clear up the issue of types of Forex accounts, their features and conditions. Let's start from the beginning. A Forex account is a deposit, the funds of which are used by us to carry out speculative operations on the market...

Why is there forced closing of positions during Forex trading? This question is of interest mainly to those who have just started their activities related to currency trading.

Stop out, margin call, drain, etc., whatever you call it, but it means only one thing - yours trade deposit has reached the minimum acceptable level, or is no longer there at all. How does this happen, why and is it possible to technically control this process and cover losses?

Why does the forced closure of positions in Forex trading occur in absentia? What is the initiative of brokers?

So, the forced closure of positions in the Forex market occurs on the initiative of brokers through whom traders trade and, as a rule, this situation brings them (the traders) a lot of trouble. Why does this happen unexpectedly? Forced closing of positions, initiated entirely by brokers, occurs when own funds There are not enough traders' trading accounts to provide margin coverage for their trades.

Typically, it is traders who unknowingly make mistakes by not placing stop orders, breaking the rules of money management, incorrectly determining the direction of the trend, etc. All this leads to the fact that open positions become unprofitable, which forces the broker to forcibly close such positions. In slang, the occurrence of such situations is called “deposit drain”. Let's look at how this happens below.

How does forced closing of positions occur in absentia?

When opening new orders, you will notice that the amount of funds in your personal account begins to constantly change. This happens due to a change in the current state of the open position, i.e. it is either profitable or unprofitable. This change, as you guessed, is the reason for the constant change in exchange rates.

Brokers through whom traders trade automatically monitor the financial results of their operations, because their task is to preserve their own money, used by traders thanks to leverage. As you understand, in any of the scenarios, the company will benefit.

To understand the essence of the problem, how positions are closed in absentia and what the reasons are, you must first define some concepts.

So, the amount of collateral required for currency trading on Forex is the amount that traders use to open trading positions. Typically, this amount is the ratio of lot sizes to the leverage itself. It can be defined, for example, like this:
Let's assume that the EUR/USD quote = 1.5000, the lot size is 10,000 EUR and the leverage is 1:100. With this option, the lot volume in relation to the leverage (10,000/100), the required deposit will be 100 EUR or 150 USD.

The next concept is the minimum collateral level, which is key when forced to close positions. This parameter can vary from 10% to 50%, but, as a rule, brokers use a 20% size. You can see it in the trading terminal with which you make transactions.

Let's look at an example for which we will use the data given above and add to it a 20% minimum collateral level. So, in our example, the minimum collateral level is 30 USD, i.e. 20% of 150, and the remaining 120 can be used to open the next position.
It should be remembered that for open positions their financial results are also taken into account, i.e., if your position shows a loss of, for example, 10 USD, then this amount will naturally be subtracted from the funds available for trading.

Now let’s look at an example under what circumstances the broker’s forced closure of positions occurs. Let's take the following example indicators: current funds on the trading account – 4,495.00, deposit – 346.00. The margin level will be 4,495/346? 100% = 1,299%. In the event that, due to losses, the size of your trading funds becomes less than 69.20 USD, i.e. the margin level drops below 20% (69.2/346? 100% = 20), then the broker has the right to forcefully close such a position.

The main task of a trader is to prevent such situations from arising, but to do this it is necessary to understand why they arise that force brokers to forcefully close positions.

Forced closure of positions - what are the reasons?

Forced closure of positions in the Forex market can take place according to 2 main scenarios (we won’t take fraud into account), which depend on trading conditions, offered by brokerage companies.

The first scenario of closing positions is a gentle option, when brokers close traders’ positions after their deposit reaches the minimum collateral level, i.e., as we said above, the amount of funds from 10% to 50% of the unprofitable transaction being made remains on the trading account.
The second scenario, most often used by some brokers, is the most insidious. Forced closing of positions in this scenario occurs when there are no funds left on the trader’s trading account for further management bidding

Moreover, such closure occurs with a small margin, allowing brokers to be guaranteed to avoid their losses. As a result, such forced closing of positions leads to the fact that from a deposit of 150 USD, as in the example above, there remains not 30 dollars, but a maximum of 5, or even less, it all depends on the case.

So, why do situations arise that force brokers to use the above-described scenarios for closing trading positions and for what reasons do they actually arise?
Some brokers may force you to close a position if its lifetime has expired. For example, according to the terms of dealing, one transaction cannot last more than two weeks. Therefore, for supporters of long-term trading, it is necessary to study the trading conditions very carefully.

Margin Call is used by brokers in cases where they believe that the trader’s position is irreversibly under threat, and accordingly, further provision of leverage can bring losses to the company. When such situations arise, brokers decide to forcefully close positions in absentia. Typically, a Margin Call appears when the trader’s deposit has less than 20% of funds remaining. The decision to use Margin Call in each individual case is made on an individual basis.

Stop out is an automatic forced closure of positions at current prices, i.e. the decision to use it is not made individually, and is used by brokers when, for a number of reasons, Margin Call was not applied.

Well, the Stop out level, as a rule, is indicated separately for different types of accounts on the official websites of brokers. When using this type of forced closing of positions in transactions, traders lose up to 90% of their own deposit.

Forced closing of positions - how to avoid this?

To prevent forced closures of their Forex positions, traders need to take certain measures. Brokers, as a rule, forcefully close only clearly unprofitable transactions. To avoid such situations, it is necessary to choose the right trading strategies, as well as use additional funds to determine the most optimal opportunities for opening positions.

Strictly adhere to management principles own capital, never take unnecessary risks, promptly close transactions that are clearly erroneous (unprofitable) and set stop orders correctly, and then the broker will not force the closure of positions.

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Closing positions in trading in fractional parts

There is a lot of talk about the ideal entry point, combining various indicators and fundamental conditions in order to find the best trading opportunity. Much less attention is paid to the importance of how to close a trade in Forex, which is too bad, since exiting correctly is just as important as opening a trade, if not more important. If you are just getting acquainted with closing deals on foreign exchange market and are not familiar with the trading terminal, we recommend watching the following video, which talks about closing a position.

Opening a trade in Forex, for example, can do nothing to stop bad trades, while closing a trade has the potential to capture profits at any point or interrupt the trading process before it goes in an unfavorable direction.

You can use automated trading as an alternative to manual trading. will allow you not to think about the entry point and exit point. An automated robot will do everything for you, but the Forexone blog warns you that in addition to the many advantages of automated trading, there are also serious disadvantages, which you can read about on the blog.

Effective techniques for closing a Forex transaction

If you want to close a Forex trade with maximum benefit and profit, then you should carefully study the following 4 effective techniques:

1. System criterion.
   One of the most logical ways to close trades is directly related to the strategy that became the primary reason for opening these trades. The strategy says that you have planned your exit in advance, so if you entered a trade based on a moving average crossover, for example, then it is usually best to exit based on the opposite crossover. This approach suggests that you must provide even the most minimal systemic criterion that will help you exit the auction.
2. Trailing stop.
   These types of stops help traders protect against losses, as well as retain profits if they occur. A trailing stop can be used independently or in combination with other methods of closing a Forex transaction. The only difficulty with trailing stops is choosing the right place to install them. If you set them too close to the price, you can take profits early, and if you set them too far, you can lose profits altogether. You can find the appropriate distance by testing your trailing stop based on historical data.
3. Price targets.
   A good example of how to close a trade in Forex is by setting price targets. The main thing is to set a realistic goal. If you set the bar too high, you will most likely never reach it and end up losing your money. And if the price target is low, then you will earn a little due to small trading risks.

   As a rule, it is good to use pivot points to set price targets. First of all, pivots use recent information, so they adapt well to market volatility. This means that key pivot levels are the most effective price targets. Secondly, thousands of professional traders watch Pivot levels, which makes them good tools in predicting turning points.

4. Technical indicators.
   Fibonacci, as well as the Elliott wave cycle, are indicators that can sometimes provide their users with reliable exit points. For intraday traders, the ATR indicator provides the ability to find exit points.

Very often, a trader forgets to place a stop order and the position is closed forcibly at the initiative of the broker; in slang, this situation is called a drain of the deposit.

The reason for this lies in the unfavorable movement of the trend, and let’s try to understand in practice how the forced closure of a position occurs.

When you open a new order, you see that the amount of funds in your account is constantly changing depending on the current status of the operation (profit or loss).

Trade big only with a leading broker

This happens due to a change exchange rate, the broker automatically tracks financial result operations, its task is not to lose your money, which you use thanks to leverage, therefore, in any scenario, the company always wins.

In order to understand the essence of the problem, you should first of all define the following concepts.

1. Required collateral for transactions - the amount that is used to open a position is usually defined as the ratio of the lot size to the leverage and is found using the formula

Lot volume/leverage, for example a lot is 10,000 euros, the Forex leverage size is 1:100

10,000/100=100 euros or 140 dollars with a quote of 1.4000.

2. Minimum margin level - shows the value at which positions are forced to be closed, usually this parameter varies from 10 to 50 percent, you can see it in your trading terminal.

If we return to our example, the collateral amount of 20% will be 28 dollars from 140, and you can use the remaining 112 to open another transaction.

But we should not forget that the financial result of an open position is also taken into account, and if you are already at a loss of $10, this amount will be subtracted from the available funds.

Forced closing of orders can occur in two scenarios, each of which depends on the trading conditions of your broker.

In the first, most gentle option, the broker closes the position after your deposit reaches the minimum collateral level, leaving you with an amount from 10 to 50 percent of the transaction collateral in your account.

The second option, the most used and the most insidious, the transaction is closed if there are no available funds left in your account, this happens with a certain margin, which gives the broker a guarantee to avoid his own losses. As a result, from your deposit of 140 dollars there will be not 28, but only 2-3, depending on your luck.

Therefore, when opening positions, always set a stop loss, even with the maximum allowable value, and never trade the entire deposit amount.