With Auto-close, you can automatically sell positions after they have been open for longer than the Auto-close settings you have configured.
Why use Auto-close?
Closing positions automatically after a certain period of time when trading serves several purposes:
Risk Management: By setting a time limit on positions, traders can mitigate the risk of unexpected market movements during extended periods of inactivity. This helps to prevent potential losses that may occur due to prolonged exposure to market volatility.
Adherence to Trading Strategy: Automated closing of positions after a specified time aligns with certain trading strategies that aim for short-term profits or specific market conditions. It ensures that trades are executed within the predefined timeframe, optimizing the strategy's effectiveness.
Capital Efficiency: Closing positions within a designated timeframe allows traders to free up capital for other trading opportunities. It ensures that funds are not tied up in stagnant positions for extended periods, enabling traders to allocate resources more efficiently.
Psychological Relief: Automatic closure of positions can provide traders with peace of mind, knowing that their trades are actively managed and not left open indefinitely. This can reduce stress and emotional decision-making associated with monitoring positions continuously.
Overall, setting a time limit for closing positions adds discipline, efficiency, and risk management to the trading process, contributing to more structured and potentially profitable trading strategies.