Why was my trade closed at the 50% level?

Modified on Tue, 3 Dec, 2024 at 8:39 PM

When your trade is automatically closed at the 50% level, it is usually because your account has triggered a Margin Call, also known as Forced Liquidation. This means that the available funds (margin) in your account are no longer sufficient to maintain the existing position, and the system will automatically close the position to prevent further losses. Besides, there may be other specific reasons, such as:

  1. The margin level is lower than the set standard:when your margin level (net value/used margin) is lower than 50%, the system will automatically trigger the forced liquidation mechanism.

  2. Market volatility:severe market fluctuations may cause the floating loss of your positions to increase rapidly, causing the margin level to drop below 50%.

  3. Excessive leverage:high leverage will amplify the risk of trading, and makes it easier to trigger forced liquidation when the market is unfavourable.

In order to avoid forced liquidation, it is recommended to maintain a sufficient account balance, control your positions reasonably and keep an eye on the market changes.

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