MetaTrader 4 Trading – Closing a Position
This lesson will cover the following
- Options
A position is automatically closed when the price hits the stop-loss or take-profit levels. When it comes to manually closing a position, MetaTrader 4 allows this to be done not only entirely with a single command, but also in increments (to scale out of the trade).
In order to close a position, the user needs to access the Order window from the Terminal and then click on the Close button. Alternatively, the trader can right-click on the order in the Terminal window and execute the Closer Order command.
The broker can also close a position, if the price reaches the Stop-Out level which has been set by him.
Closing a position in increments can be done only through the Order window. You need to specify the size of the position you want to close by, select/type it in the Volume field and click the Close button. For example, if your position amounts to 1 standard lot and you want to close 40% of it, you need to type 0.4 in the Volume field and click close. This will leave you in the market with 0.6 standard lots. The menu is illustrated below.
Close a position by opposite position
The MT4 platform also allows for a position to be closed by opening an opposite position of the same security. If there is one or more open opposite positions, you can close a position by or together with an opposite one. This is done via the Order window. In the Type menu, you must select the Close by option, which will open up a list of all opposite positions. Selecting one of those will make the Close button active. If the two positions are of equal size, both will be closed. If their volume differs, only one will be closed, while the larger one will remain on the market with a size equaling its initial size minus the size of the smaller order. Logically, its direction will match the direction of the larger order.
The terminal also allows the closure of multiple opposite positions. This is done by selecting Multiple close by in the Order windows Type menu. A list of opposite positions will again appear, making the Close button active. They will be closed in pairs according to their open time and on the same principle as described for the single opposite position closure.