My positions were closed even though I had enough money to maintain them.
I’m using aggregating mode. I had 13 active positions. My account got below 25%. No problem, a certain amount of position(s) will be closed until the account reaches more than 25%, following the “first in, first out principle”. First position got closed. Everything as it should be. Suddenly, in a few seconds, all the remaining 12 positions immediately closed aswell, even tough my account jumped to 33%. So basically the positions were all closed around 33%. I’ve done my math to double check and indeed, when the first position was closed the account status should have come to 33-34%, just like it did.
Result? Lost money I worked 2 summers for. If the positions weren’t closed, at the moment I would have $2.5k dollars more (still rising, probably more in the next few days).
Did anyone have similiar experiences? If this doesn’t get resolved I’m withdrawing all the money that’s left and using it to take legal actions ASAP.
Have a nice day.
EDIT: I forgot a pretty important detail. The stock price did not fall enough in that 2-3 second timeframe to cause my account to drop to 25% again, not even to 30%.
9.2. You shall at all times maintain an appropriate margin level as per clause 9.1 and you shall independently monitor the compliance of the margin and recover it instantly when it drops below the required minimum.
9.3. If you fail to provide the required margin under clause 9.1 (if the total of your Account balance falls below the minimum margin required), we shall inform you instantly via the Trading Platform which provides access to your Account status, and by means of an automatically generated email.
9.4. You acknowledge and agree that upon our receipt of the information under clause 9.3, we shall close the open positions at current market prices without informing you in advance, in order to prevent you from sustaining losses exceeding the funds deposited in your Account. Under this Agreement, you agree to the price levels of the transactions upon closing the positions. You shall be informed about your closed positions by means of an instant notification via the Trading Platform that gives you access to your Account balance, or by an automatically generated email.
9.5. The provisions under clause 9.4 shall apply when the shortage of funds exceeds 50% of the margin required, and all of your open positions shall be closed one by one or simultaneously.
9.6. The procedure and actions under clauses 9.4 and 9.5 in case of margin shortage are automatically set in the Trading Platform and are activated with no human intervention.
9.7. The procedure and actions under clauses 9.4 and 9.5 shall be performed to protect you from the accumulation of large losses that would be expressed in a negative account balance, but that protection is not available to professional clients and eligible counterparties. Thus, you shall avoid the assumption of additional liabilities exceeding the funds in your Account.
Invest/ISA is your own funds. You can only lose what you have added. Don’t worry they won’t jump in to close anything.
The OP is referring to CFD where you play with leverage. They have a responsibility to protect against negative balance. If you took a short position the possibility for loss is infinite.
Isn’t this a case of funds weren’t added or enough positions manually closed and sacrificed to keep it above the margin required, so all positions were closed?
