Forex trading is a popular way to earn money online. It involves buying and selling currencies on the foreign exchange market. One of the strategies used by forex traders is partial closing. Partial closing is the process of closing a part of a trade while leaving the remaining part open. In this article, we will explain how to partial close forex trade.
Why Partial Close?
There are several reasons why forex traders choose to partial close their trades. One of the main reasons is to reduce risk. By closing part of a trade, traders can lock in profits and reduce their exposure to potential losses. Another reason is to free up capital. By closing part of a trade, traders can use the funds for other trades or to cover expenses.
How to Partial Close?
Partial closing can be done manually or automatically. Manual partial closing involves closing a part of a trade manually by using the order window in the trading platform. Automatic partial closing involves setting up a trade with a pre-determined partial closing point.
Manual Partial Closing
To partially close a trade manually, follow these steps:
Step 1: Open the trading platform and locate the trade you want to partially close.
Step 2: Right-click on the trade and select “Modify or Delete Order.”
Step 3: In the Order window, select “Close” from the Type drop-down menu.
Step 4: In the Volume field, enter the amount you want to close. For example, if you want to close half of the trade, enter 0.5 in the Volume field.
Step 5: Click on the “Close” button to execute the partial close.
Automatic Partial Closing
To set up an automatic partial closing trade, follow these steps:
Step 1: Open the trading platform and locate the trade you want to set up for automatic partial closing.
Step 2: Right-click on the trade and select “Set Trailing Stop.”
Step 3: In the Trailing Stop window, select “Partial Close” from the Type drop-down menu.
Step 4: In the Volume field, enter the amount you want to close. For example, if you want to close half of the trade, enter 0.5 in the Volume field.
Step 5: Set the trailing stop distance. This is the distance from the current market price at which the partial close will be triggered. For example, if the current market price is 1.1000 and you set the trailing stop distance to 50 pips, the partial close will be triggered when the price reaches 1.1050.
Step 6: Click on the “OK” button to set up the automatic partial closing trade.
Tips for Partial Closing
Here are some tips to help you make the most of partial closing:
1. Use partial closing to reduce risk and lock in profits.
2. Set up automatic partial closing trades to save time and reduce the risk of emotional trading decisions.
3. Use trailing stops to set up automatic partial closing trades.
4. Keep an eye on the market and adjust your partial closing strategy as needed.
5. Take into account the spread when calculating the partial closing amount.
Conclusion
Partial closing is a useful strategy for forex traders. It can help reduce risk, lock in profits, and free up capital. Manual partial closing can be done by using the order window in the trading platform. Automatic partial closing can be set up by using trailing stops. By following the tips outlined in this article, you can make the most of partial closing and improve your forex trading results.
