In leveraged trading, the system will automatically force-close (liquidate) your open positions under certain conditions to prevent excessive losses on client accounts. Here are the common trigger conditions:
1. Margin Level Falls Below Stop-Out
This is the most common reason for automatic liquidation.
Margin Level Calculation:
Margin Level = (Equity / Used Margin) × 100%If this value falls below the broker’s stop-out threshold, the system will automatically close positions to prevent the account from going negative.
✅ Example (stop-out at 10%):
If equity is $100 and used margin is $1,000, margin level = 10%.
Once losses cause it to drop below 10%, the system will start liquidating the positions with the highest losses first.
2. Stop Loss Triggered
If you have set a stop-loss price on an order, once the market price hits that level, the system will automatically close the order to limit further losses.
3. Negative Equity, Negative Balance Protection
Rapid market moves (gaps, major news) can lead to losses exceeding account funds;
The platform’s negative balance protection will liquidate all positions to prevent the account from going negative;
Your loss will never exceed your total account balance.
4. Expired Pending Orders or Time-Based Close Strategies
Certain pending orders (e.g., Buy Stop, Sell Limit) or time-based close strategies (e.g., Good Till Time) that reach their expiry without being triggered will be automatically cancelled or executed.
5. Instrument Expiry (Futures/Options CFDs)
If the traded instrument has an expiry date (such as futures index CFDs), the system will automatically close any open orders on the contract’s expiry date.
6. Platform Risk-Control Measures (Rare)
In extreme volatility or low liquidity, the system may automatically restrict or close high-risk positions to protect clients and the platform;
Such measures are communicated separately and documented in the trading rules.
📌 Tips:
Regularly monitor your margin level and add funds or close positions manually to avoid involuntary liquidation;
Using stop losses (SL) is an effective way to manage risk;
Maintaining sufficient account balance is the most direct way to prevent a stop-out.
If your order was liquidated and you’re unsure why, please check the execution details under “Account History” or contact customer support for a full explanation. We’re here to help!