Sometimes your open trades can get closed by the system automatically, without your consent. The IQ Option auto close situation might happen for several reasons: reaching Stop-Loss and Take-Profit levels, slippage, or insufficient balance.
Let’s learn about each of these reasons in detail.
IQ Option auto close: Stop-Loss and Take-Profit
Stop-Loss (SL) and Take-Profit (TP) are the orders you send to the broker to automatically close the position once the price hits the desired level of profit or loss.
SL and TP are two powerful money management tools. Traders use them to balance their profit/loss ratio and, importantly, automate the process. Price action is a nail biter, so IQ Option’s auto Take-Profit and Stop-Loss has got your back so you don’t have to keep your eyes on the screen 24/7. This tool is applicable for Forex, stock, crypto, commodity, and ETF trading.
If your position was auto-closed, the first thing to check is whether your TP and SL levels were reached.
If you wish to have more flexibility on your auto close levels, it’s possible to activate the Trailing Stop feature. It will shift your SL and TP levels if the price keeps going in the desired direction. In this case, the deal will be auto-closed once the beneficial movement stops.
The slippage effect addresses the previous point and can lead to auto-closing your position. Slippage occurs when there is a difference between the expected order price and the price at which the order is executed. Usually, it happens during periods of high volatility, but it might be the case in the “normal” market as well. I.e., in fast-moving markets, your order may be executed at a different price than the one quoted when it was placed.
Slippage can also occur when using Stop-Loss or Take-Profit: when prices change rapidly, the requested closing rate may not be available in the market. In this case, your position will be automatically closed at the next available price. The good news is the quoted prices at IQ Option are perfectly executable the majority of the time. On top of that, slippage can occur in favor of the trader, i.e., a slippage trade can close with a higher profit.
Another possible reason for IQ Option position auto closing is using the Use Balance to Keep Position Open option. It allows you to keep the position open even when the loss reaches 95% and hits the autoclose level. Traders can use this option when they have a strong belief that the price will reverse soon, even though their deal is already out of money.
In this case, IQ Option will reserve the money from your balance to keep the position live. If the price eventually reverses in the desired direction, the broker will return this money to your balance. If you got unlucky, though, the system will liquidate the position automatically.
IQ Option can close your position without warning only in exceptional cases. With Stop-Loss and Take-Profit, the trade will close at the level you pre-set. The system will also shut the deal down if the slippage occurs at the closing rate that is unavailable in the market at the given moment. Finally, auto close may occur when the market goes against the trader while using the Use Balance to Keep Position Open option, preventing them from losing all the money.