How to Open and Close Positions in Metatrader 4 – Part 2

Closing of a Position

A trading position is opened when a financial instrument is being bought or sold. Closing of a position allows to make profit at the expense of rate difference. Closing is always an inverse operation relative to the initial trading operation. If you initially buy one lot of a financial instrument, you will have to sell one lot of this financial instrument to close the position. You can close a single position in the Metatrader 4 trading terminal, close a position by an offsetting position or close several offsetting positions.

Closing of a Single Position

A single trading position is closed automatically when price is equal to take profit or stop loss value. If a long position is being closed, the value of orders should be equal to the Bid price, and if a short position is being closed, the value of orders should be equal to the Ask price.

To close a position in the Metatrader terminal manually, you should execute a command of the context menu in the window “Terminal – Trade” and double left click on the open position.

The Metatrader 4 trading terminal allows to open a position partially. To do it, input lot values less that the open position has to the field “Volume” before pressing the button “Close”. A broker can also close a position, for example, if price has reached the level “Stop Out” set by the broker.

Metatrader builds historical charts only on the basis of Bid process, and some part of orders displayed on charts is built on the basis of Ask prices. If you tick the checkbox “Show ask line” in “Tools – Options – Charts”, the Ask price of the last bar will be displayed.

Closing of Offsetting Positions

An offsetting position is an opposite position to the current position on the same currency pair. When there are one or several offsetting positions among open positions, the chosen position can be closed together with an offsetting position. First of all, open the window “Order” in metatrader and select “Close by” on the field “Type”.

At that moment, all offsetting positions will appear in the bottom part of the window of the metatrader trading terminal. Select an offsetting position in the list and press “Close”. Two positions will be closed simultaneously. If offsetting positions have different number of lots, one of them will remain open. Its volume will be equal to the difference of lots, and price and the direction of opening will be equal to the one with a greater volume.

Closing of Several Offsetting Positions

Closing of several offsetting positions on one trading instrument in the metatrader 4 terminal can be done by means of closing of several offsetting positions. To do it, you should also open the window “Order” and select “Multiple Close by” on the field “Type”.

The list of offsetting positions will appear in the bottom part of the window in metatrader 4 and the button “Multiple close by for…” will become active. You can close all offsetting positions by pressing this button. Positions are closed in pairs according to opening time.

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