I am new to Forex and practicing using FXCM trading platform. Yesterday I bought 4 standard lots of EUR/CHF. the account balance at time of purchase was some 4000$.I slept at night after putting a limit order which was 15 pip higher than the value I bought.In the morning I saw the position is automatically closed giving me a loss of some $2000. I was shocked to see how the postion get closed automatically if i havent put any stop order.Any explanation of this cause is appreciated.

If the position was closed automatically without any stop or limit set, then it was most likely a margin call. If you were left with $2,000 in the account then the margin requirement for each 100k standard lot would have been $500 indicating a total margin requirement of $2,000. This leaves you with $2,000 in usable margin to guard against losses on your account. If the $2,000 goes to $0 due to losses on your EUR/CHF positions, a margin call will occur.

You can verify if the trades were closed due to a margin call by running a report on your account. Goto the top of the platform, click on the Report button, and run the report for the day the trades were closed. In the Close Position section at the top of the trading report, you will see a column titled Condition. If it lists MC as the condition for the closing order, that stands for Margin Call.

There’s also an explanation of the margin call feature on FXCM’s website here http://www.fxcm.com/execution-risks.jsp, scroll down towards the bottom of the page.

If that doesn’t answer it completely, I would recommend contacting client support since support available 24/7.

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