Best way to close half an open position | Forex Factory

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Best way to close half an open position

  • #1
  • First Post: Jun 7, 2010 9:12am Jun 7, 2010 9:12am
Hi there,

I am on Oanda but I guess this would apply to any broker. As far as I can tell there are 2 ways to close half an open position. I can either open 2 orders knowing I will close one if I hit my target and let the other run. Or, I can put it all in one order and open another order in the opposite direction for half the amount at my target price. So to close half an open buy I initiate a sell for half the amount and visa versa. Is that correct?

Is there any advantage/disadvantage doing it either way or is it just a personal preference?

I have read some people say that opening 2 orders is the right way to do it but I cannot figure out why one would be better than the other.
  • #2
  • Jun 7, 2010 9:37am Jun 7, 2010 9:37am
Quoting EasySt
Hi there,

I am on Oanda but I guess this would apply to any broker. So to close half an open buy I initiate a sell for half the amount and visa versa. Is that correct?
On most platforms you just click on an order and select "close" and then this gives the option of how many lots to close. Just choose half the quantity. Or, as you say, open 2 or more orders.

Opening trades in the opposite direction is going to cause more work and spread costs.

Considering you have been posting on the J16 thread what easy trades your winners have been I'm surprised you didn't already know this.
Gone to a better place
  • #3
  • Jun 7, 2010 10:06am Jun 7, 2010 10:06am
You're going to incur spreads costs either way whether you just "close" part of your position or open a trade in the opposite direction.
  • #4
  • Edited 10:30am Jun 7, 2010 10:18am | Edited 10:30am
Quoting Lonestar
You're going to incur spreads costs either way whether you just "close" part of your position or open a trade in the opposite direction.
Yes, I am 'puzzled' why sminkester didn't know this considering he has over 2000 posts.

So anyways, symantecs of how it is done on the software aside, are there any advantages/disadvantages to doing it either way?
  • #5
  • Jun 8, 2010 1:41am Jun 8, 2010 1:41am
Quoting EasySt
Yes, I am 'puzzled' why sminkester didn't know this considering he has over 2000 posts.

So anyways, symantecs of how it is done on the software aside, are there any advantages/disadvantages to doing it either way?

If we close part of a position, we don't pay any more spread. If we open a new position in the opposite direction, we pay spread on the new order. We pay spread every time we open an order.

By the way, I think the word you are looking for is semantics. Symantec is the name of a software company.

And it's Mr sminkester to you...
Gone to a better place
  • #6
  • Jun 8, 2010 1:43am Jun 8, 2010 1:43am
Quoting smikester
And it's Mr sminkester to you...
Mr Smikester.
  • #7
  • Jun 8, 2010 9:42am Jun 8, 2010 9:42am
Quoting smikester
If we close part of a position, we don't pay any more spread. If we open a new position in the opposite direction, we pay spread on the new order. We pay spread every time we open an order.

By the way, I think the word you are looking for is semantics. Symantec is the name of a software company.

And it's Mr sminkester to you...
So you're saying when you close part of a position the broker just takes it off the books without any counter action? No. If you're long 100,000 and you close 50,000 of it, they have to sell that part at a price which will be determined by the spread. What if the spread has doubled at the time you close 50,000 than when you opened the position. What bid/ask do you think they are going to use?
  • #8
  • Last Post: Jun 8, 2010 6:17pm Jun 8, 2010 6:17pm
Quoting smikester
If we close part of a position, we don't pay any more spread. If we open a new position in the opposite direction, we pay spread on the new order. We pay spread every time we open an order.

By the way, I think the word you are looking for is semantics. Symantec is the name of a software company.

And it's Mr sminkester to you...
I would just LOVE to know who your broker is. Free closing of positions. Sounds great to me......if it existed. I suppose next thing you are going to tell me is you know a place where there is a free lunch!

So where can I get this free lunch 'Mr.' spelling Nazi? And don't forget to critisize my punctuation this time.
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