As such, there is no expiration date for a trade in Libertex. Automatic closing of a trade can occur in the following cases:
1. If you have set profit or loss limits (i.e. Stop-Loss or Take-Profit) on your trade.
When opening a trade in Libertex terminal you are offered to set profit and loss limits. If you set such limits, the trade will be automatically closed when these conditions are reached. Profit and loss limits can be set both when opening trades and in current open trades.
2. At the contract expiration date - expiration - for CFD instruments (indices, oil, gas, metals).
If you have an open trade on expiry instruments, e.g. oil, gas, metals (except gold and silver), and the “auto rollover” checkbox is not checked, the trade will be automatically closed on the expiry date of the contract. More detailed information is available at the link.
3. As a result of receiving a significant loss, i.e. upon reaching the Stop-Out level.
In case the loss exceeds 90% of your invested funds (for all instruments except shares), the trade will be subject to forced closing. When trading stocks, the trade will be closed by Stop-Out when the loss reaches 80% of the amount of funds you have invested in the trade.
For example, you are trading the EUR/USD currency pair. You opened a trade for 100 dollars to buy with a multiplier of 20 at a quote of 1.22216. At the same time the spread of 3$ was written off. As a result of the release of important economic news, the EUR/USD quote has fallen sharply to the level of 1.16219. What will happen in this case?
Let's calculate the financial result of this trade:
PL = 100 * 20 * (1.16219/1.22216 - 1) - 3 = -101.14 $.
As we can see, the loss on the trade amounted to -101.14$. Since our amount of invested funds was $100, it turns out that the loss has reached and exceeded this amount of funds. As a result, the trade will be closed automatically by Stop-Out.
Let's consider another example. You open a trade to sell Apple shares. You expect the price to fall in the near future.
Let's assume that you opened a $100 sell trade with a multiple of 20 at a quote of $178.22. At the same time, a spread of $3 was written off. Suddenly, the price spiked to $185.09 per share. Let's see what happens to the trade in this situation:
PL = 100 * 20 * (1 - 185.09/178.22) - 3 = -80.1 $
Due to the fact that the loss amounted to $80.1, the trade will be subject to closing, because when trading shares trades are closed at a loss of 80% or more of the amount invested.
Please note that in the Libertex terminal only the amount you specify when opening a trade is involved. Thus, a loss on one trade does not affect the rest of the balance.