What is auto close in IQ option?
The IQ Option platform makes trading very easy. Today we will tell you about another useful feature which is position auto closing. You are probably familiar with such concepts as Stop Loss and Take Profit. The former is an order to close a loss position once a predefined price level is reached. A Take Profit order is an order to close a profitable trade at a specified price level. IQ Option’s Position auto closing allows you to set these parameters for an open trade or add them to already open trade.
How position auto closing works on the IQ Option platform?
Let’s assume that I am assuming declines on AUDUSD so I want to sell this currency pair. In the chart below you see this situation. Even before I open the position, I can set position auto closing, so that I do not have to constantly monitor the open trade.
Available modes of position auto closing
I have two values to enter When profit is (1) and When loss is (2). Before clicking on the red sell button I set these parameters. Both have 3 modes available. They can be expressed in:
- % – we specify at how many percent of profit/loss the position should be closed. This percentage is calculated from the Amount of the transaction, which we define when opening the transaction.
- $ – you can also enter the amount of profit or loss that will cause the position to be closed.
- = – you can also enter a specific price level at which the transaction will be closed with a profit or loss.
As you can see in the settings above, I set the take profit as 200%. This means that with a position value of $1000 it will be closed when it makes $2000. I set the stop loss a few pips above the last peak at the level entered from the hand 0.7142, so I referred to the price level of the asset. If AUDUSD broke through this peak, my entry would be meaningless, so this is such a logical SL. Below is a chart of the open trade with the position auto closing set.
You can edit the auto close settings at any time. You can also add them to a previously opened transaction.
It is also worth mentioning that it is possible to set either Stop Loss alone or Take Profit alone.
Pros and Cons
- 👍 Enables efficient risk management with Stop Loss and Take Profit parameters
- 👍 Provides flexibility in defining auto close settings using various modes
- 👍 Reduces the need to constantly monitor open trades
- 👍 Allows for adjustments to auto close settings even after trade initiation
- 👎 Can be confusing for beginner traders to understand and utilize effectively
- 👎 Requires regular monitoring and adjustments for optimum results
|Auto Closing Advantages
|Auto Closing Disadvantages
|Efficient risk management
|May be confusing for beginners
|Requires regular monitoring and adjustments
|Reduced need for constant trade monitoring
|Possible overreliance on auto close settings
How to survive even at a 95% loss?
There can be a situation where the loss on a position reaches 95 percent. Nevertheless, on IQ Option platform you have a possibility to maintain the position open.
In order to do this, you should click on the ‘Set Up Auto Closing’ button and select ‘Use Balance to Keep Position Open’.
If the loss for a position reaches minus 95 percent an additional 20 percent of your initial investment amount is reserved in your account. If the position continues taking a loss your available balance is reduced by 20 percent again and again.
Once the position rises to at least minus 94 percent all previously reserved funds are returned to your balance. You can limit the additional funds reserved on your balance by specifying a level of loss that is acceptable to you for this position.
You already know how position auto closing works and how to prevent a transaction from closing in critical situations. Log in to IQ Option and try out these tools. Want to share your comments? Feel free to do so under the article.
We wish you enjoyable trading.
- Q: Can I set auto close settings before opening a position on IQ Option?
- A: Yes, you can set position auto closing parameters even before you open a position.
- Q: Can I modify the auto close settings after the trade has been initiated?
- A: Yes, you can edit the auto close settings at any time, and you can also add them to a previously opened transaction.
- Q: What are the three modes available for expressing auto close settings in IQ Option?
- A: The three modes available for expressing auto close settings are percentage (%), amount ($), and specific price level (=).
- Q: Can I set either Stop Loss or Take Profit alone in IQ Option?
- A: Yes, you can set either Stop Loss or Take Profit alone for position auto closing.
- Q: What happens when the loss on a position reaches 95% on the IQ Option platform?
- A: If the loss reaches 95%, an additional 20% of your initial investment amount is reserved in your account to keep the position open. If the position continues taking a loss, your available balance is reduced by 20% again and again until it rises to at least minus 94%, at which point all previously reserved funds are returned to your balance.
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