What usually happens if your computer temporarily loses its internet connection, or if there is a power outage? Such things are not uncommon. I’ve heard conflicting reports over what exactly happens.
For instance, would your open positions (already fulfilled trades) automatically CLOSE at whatever the current market value was, or would they stay as open positions until you logged back in? I don’t really understand why open positions would reverse, because haven’t they already been fulfilled in the market, regardless of what happens on the client side?
What about open orders? For instance, if you’ve set stop or limit orders that haven’t been fulfilled yet … would these be erased if you lost your connection or power?
It just seems very weird to me that open positions would simply "exit" or "close" if you were to lose your connection. For one thing, wouldn’t that mean that you would need your lots re-bought or re-sold first? Why in the world would it automatically exit out of the trade? I can understand a margin call, but …
Secondly, what about people who are position traders and have open positions that last weeks or months? Do these people keep their software, computer, and internet connections going without any interruption the entire time? Brief interruptions in service or a power outage are not uncommon in our world. Really don’t understand it at all.
Specifically, I’m using MB Trading’s Navigator, but what tripped me is that they said "trailing stops are server-sided and protected from disconnects," which to me implies that other types of entry orders are client-sided and are not protected from disconnects?
I really hope I’m misinterpreting something.
The thing is, if I end up with a margin call because my connection or power was out too long, then that is one thing. But an open trade automatically exiting out into a closed trade simply because you lost connection or power briefly makes absolutely no sense to me. I don’t understand why a fulfilled trade would even do that.
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