Forex trading can be lucrative, but it can also be challenging. One of the essential skills a trader must possess is the ability to manage trades effectively. While opening trades is relatively easy, closing them can be tricky. Sometimes, a trader may want to close a trade partially while leaving the rest of the position open. This strategy is known as scaling out, and it can help traders lock in profits while still benefiting from potential price movements. In this article, we will discuss how you can partially close a forex trade using the NinjaTrader platform.
NinjaTrader is a popular trading platform that offers advanced charting capabilities, order management, and automation tools. It also provides traders with the ability to partially close trades, which can be useful in managing risk and maximizing profits. Here are the steps to follow when partially closing a forex trade on NinjaTrader:
Step 1: Open the Trade Window
The first step is to open the trade window. This can be done by clicking on the “New” button at the top left corner of the platform and selecting “Order Entry” from the dropdown menu. Alternatively, you can use the keyboard shortcut F1.
Step 2: Select the Trade to Partially Close
Once the trade window is open, you will see a list of all your open positions. Select the trade you want to partially close by clicking on it. This will highlight the position, and the details of the trade will be displayed on the right-hand side of the window.
Step 3: Enter the Quantity to Close
Next, you need to enter the quantity you want to close. This can be done in the “Quantity” field, located below the “Buy” and “Sell” buttons. By default, the quantity will be set to the full size of the position. To partially close the trade, enter the number of lots or units you want to close.
Step 4: Select the Order Type
After entering the quantity, you need to select the order type. In this case, you want to partially close the trade, so you need to select the “Limit” order type. This will allow you to set a specific price at which the trade will be closed.
Step 5: Set the Limit Price
Once you have selected the “Limit” order type, you need to set the limit price. This is the price at which you want to close the trade. To do this, simply enter the price in the “Price” field. If you are closing a long position, the limit price should be higher than the current market price. If you are closing a short position, the limit price should be lower than the current market price.
Step 6: Submit the Order
After setting the limit price, you can submit the order by clicking on the “Sell” or “Buy” button, depending on the direction of the trade. This will close the specified portion of the trade at the limit price you set.
Conclusion
Partially closing a forex trade can be a useful strategy in managing risk and maximizing profits. Using the NinjaTrader platform, traders can easily close a portion of their position while leaving the rest open. To do this, you need to open the trade window, select the trade to partially close, enter the quantity, select the order type, set the limit price, and submit the order. With these steps, you can effectively manage your trades and increase your chances of success in the forex market.
