diff --git a/src/Managing.Application/Bots/Grains/LiveTradingBotGrain.cs b/src/Managing.Application/Bots/Grains/LiveTradingBotGrain.cs
index 0938cb6c..35dc7959 100644
--- a/src/Managing.Application/Bots/Grains/LiveTradingBotGrain.cs
+++ b/src/Managing.Application/Bots/Grains/LiveTradingBotGrain.cs
@@ -316,15 +316,7 @@ public class LiveTradingBotGrain : Grain, ILiveTradingBotGrain, IRemindable
         // Only check for open positions if this is not part of a restart operation
         if (!isRestarting)
         {
-            var hasOpenPositions = await HasOpenPositionsInDatabaseAsync();
-            if (hasOpenPositions)
-            {
-                _logger.LogWarning(
-                    "Stopping bot {Name} while it still has open positions in database. Trading loop will stop but positions remain managed by system.",
-                    _tradingBot?.Config.Name);
-                throw new InvalidOperationException(
-                    "Cannot stop bot while it has open positions. Please close all positions first.");
-            }
+            await CloseAllOpenPositionsAsync();
         }
 
         // The check is now against the registry status
@@ -1079,6 +1071,55 @@ public class LiveTradingBotGrain : Grain, ILiveTradingBotGrain, IRemindable
         }
     }
 
+    /// <summary>
+    /// Closes all open positions for this bot before stopping
+    /// </summary>
+    private async Task CloseAllOpenPositionsAsync()
+    {
+        try
+        {
+            var botId = this.GetPrimaryKey();
+            var positions = await ServiceScopeHelpers.WithScopedService<ITradingService, IEnumerable<Position>>(
+                _scopeFactory,
+                async tradingService => await tradingService.GetPositionsByInitiatorIdentifierAsync(botId));
+
+            var openPositions = positions?.Where(p => p.IsOpen() || p.Status.Equals(PositionStatus.New)).ToList() ?? new List<Position>();
+
+            if (openPositions.Any())
+            {
+                _logger.LogInformation(
+                    "Bot {GrainId} has {Count} open positions that will be closed before stopping: {Positions}",
+                    botId, openPositions.Count, string.Join(", ", openPositions.Select(p => p.Identifier)));
+
+                foreach (var position in openPositions)
+                {
+                    try
+                    {
+                        _logger.LogInformation("Closing position {PositionId} for bot {GrainId}", position.Identifier, botId);
+                        await ClosePositionAsync(position.Identifier);
+                        _logger.LogInformation("Successfully closed position {PositionId} for bot {GrainId}", position.Identifier, botId);
+                    }
+                    catch (Exception ex)
+                    {
+                        _logger.LogError(ex, "Failed to close position {PositionId} for bot {GrainId}", position.Identifier, botId);
+                        // Continue with other positions even if one fails
+                    }
+                }
+
+                _logger.LogInformation("Finished closing all open positions for bot {GrainId}", botId);
+            }
+            else
+            {
+                _logger.LogDebug("Bot {GrainId} has no open positions to close", botId);
+            }
+        }
+        catch (Exception ex)
+        {
+            _logger.LogError(ex, "Error closing open positions for bot {GrainId}", this.GetPrimaryKey());
+            // Don't throw here - we want to continue with the stop process even if position closing fails
+        }
+    }
+
     /// <summary>
     /// Checks for open positions in database by bot identifier (initiator identifier).
     /// This is the source of truth for preventing bot stop when there are unfinished positions.