How to close a position.
Closing a position either entirely or partially is part of trading so it is imperative that you know how to. One way to close a position entirely is through the terminal:
Just click on “X” sign to the to the rightmost of the open order.
Another way is by right-clicking on the open position and then selecting Close Order from the pop-up menu:
A third way to close it entirely is through the Order window:
Again, just right-click on the position that you would like to close and select Modify or Delete Order:
Then press the yellow close button:
Similarly, you can partially close a position:
Just specify the size in the Volume field that you would like to close, for example, 0.5 and then press close.
Apart from Take Profit, an equally important pre-calculated price level used by traders today is called Stop Loss. As the name suggests, this is a type of pending order that allows the trader to set a predefined level on the price chart that closes a losing position. In other words, it ensures a minimum loss as it closes the position. Stop Loss is abbreviated as (S/L).
For example, a trader goes long (in other words, enters a buy position) by entering the market at 1.2980, expecting prices to rally higher.
He knows that the market is unpredictable, however, and that it may go in the opposite direction than his expectation. So he calculates the risk before entering the market and places a Stop Loss order below the entry price.
If the Bid price hits the predefined Stop Loss price at 1.2880, the position is closed, and a minimum loss is ensured.
Similarly, if a trader enters a sell (short) position, expecting prices to fall, he would place a protective Stop Loss order at a higher level than the entry price in case prices spike up.
If the Ask price hits the predefined Stop Loss price, the position is closed, and minimum loss is ensured.
Stop Loss has been designed to protect your capital by ensuring a minimum loss; it is a level set by the trader in advance according to how much he or she is willing to risk and/or lose. It’s important to remember that Stop Loss and/or Take Profit orders may be placed on Instant Execution accounts simultaneously when entering the market. On Market Execution accounts, you can specify a Stop Loss or Take Profit order when placing a pending order to enter the market.