Experienced traders may be familiar with the “close by” facility to close orders. However, it is surprising just how many traders are not aware of its existence in MT4. In addition, it is quite interesting to note that a lot of brokers disable this feature as they do not want their clients reducing their trade costs by using the close-by method of order closure.
The Close-By facility allows traders to close two hedged orders by cancelling each other out. The benefit of doing this is that only one spread is payed for two orders. In contrast, if two hedged orders are closed independently then two spreads will be paid and hence the trade cost is paid twice.
The benefit of using this functionality is therefore clear but it’s quite surprising to know just how many traders don’t know how to use this facility or even that it exists in the first place. The reason why is likely because the option is well hidden and only becomes available when an MT4 account has 2 orders that are fully or partially hedged. If there are 2 hedged orders like this then a trader needs to right click on one of the hedged positions and select the “Modify or Close Order” option. Then a familiar dialog box will appear and there will be an additional option available that isn’t normally shown. If the “Type” drop-down is clicked a new option will appear labelled “Close-by” or “Multiple Close-by”. These options once selected will present details of any orders that can be used to fully or partially close the position. Upon selecting the order a trader wishes to Close-by then clicking close the orders will cancel each other out.
Screenshots showing Close-by and Multiple Close-by options:
It’s worth noting that if a broker has disabled this option in their MT4 server the Close-by option will not appear. Elite Capital Option fully supports this facility and encourages traders to use it as it provides cost saving for the trader.