Closing part of your position

Trading Discussion
1

Hi Guys,

On my travels though the vast resources of education here on BabyPips, and on You-Tube, I’ve been hearing about traders closing down part of their position, and I’m not too clear on what that means or how you do that.

Is it that traders who do this have software that allows them to reduce the amount at risk on a single order (does MT4 allow this?), or is it that traders place several identical orders at once, say four orders each representing 25% of their position, which they close on a single basis at relevant points?

Thanks,

Rez

2

I don’t use it, but what i think works:

  1. When closing order specify volume you want to close.

  2. Use some sort of ‘‘one click trader’’. (expert advisor tht lets you open and close trades conveniently).

  3. Open a position in oppoite direction if your broker uses OCO = one cancels other.

3

It also defficult for me ,how can chose position in forex trading.iam a beginner.can any one help me about the position.

4

Go to the close order window, then change the volume to how much you want to close, then press the Close button.
Try on a demo .

5

To close part of a trade position (partial closure), you may break up the trade positions to the lot sizes that you want. For example, if you intend to trade 1 standard lot, you may consider breaking up the trade positions to 0.25 lot each so you may close off each position when your trade moves in your direction. You may even set take profit levels for each position so they will close off automatically when the TP levels are achieved.

Alternatively, you can manually close your position by indicating the lot size to close. For example, if you are in a trade position with 1 standard lot and you decide to partial close, you can click open the trade position, enter 0.25 for lot size and click close position. What remains for your position will be 0.75 lot.

6

Thanks for your explanations everyone :slight_smile: