Here is a question I received from a MetaTrader 4 trader.
“Why does order close by itself?”
This is the screenshot we received from the traders. Can you spot the reason why this order was closed by itself?
“The reason this ordered was closed by itself because a Stop Loss (S/L) order was placed and triggered when price reach to the trigger price.”
Stop Loss is a type of Pending Order which will be triggered and opened position will be closed when price goes against traders and reached to the specified amount. Stop Loss will help traders to prevent further loss when the market doesn’t develop as expected.
Besides Stop Loss there is another pending order that will help you to close orders automatically and to secure profit – The Take Profit. Understanding stop loss and take profit will ultimately help you to minimize loss and maximize profit in forex trading.
Though setting up Stop Loss accidentally or incorrectly will result in a similar scenario as this trader that the open position is been closed accidentally.
Take a look at these 2 videos here to find out more about stop loss and take profit!
How to set up Stop Loss & Take Profit in MT4: https://youtu.be/L6PXgo-24XE
Where to place Stop Loss and Take Profit? https://youtu.be/JhUIlBlg7g4
Feel free to come and talk with me if you have any question!