Partial Close in Forex: How to Take Profit in Stages, With MT5 Steps and Examples
Are you unsure whether to close a profitable position completely or keep holding it?
In short, a partial close protects part of your profit, but it can reduce your gain when the price runs far.
This article covers a USD account calculation, the steps in MT5 and how to set your rules.
Key takeaways
- A partial close protects profit by closing part of a position, though a big gain can shrink.
- In the example, closing half at +50 pips leaves +250 USD even if the price falls back to breakeven.
- In MT5, right-click in the Trade tab, choose Close and reduce the Volume before you execute.
In short: a partial close protects profit, but can shrink a big gain
- A partial close locks in profit by closing only part of a position
- Profit tends to remain if the price reverses, and the rest can aim for more
- Your profit can be smaller than if you had held the whole position
- In MT5, you reduce the Volume on the close screen and execute
What is a partial close? The basic idea of taking profit in stages
A partial close means closing only part of the position you hold. Because you lock in profit in portions, it is also called taking profit in stages.
For example, if you close 0.5 lot of a 1.0-lot position, 0.5 lot remains. The part you closed is unaffected by price moves, and only the remainder keeps moving.
- The part you lock in: profit and loss is fixed when you close and does not change with later moves
- The part you keep: profit and loss changes with the price, so it needs stop-loss and take-profit orders
- Purpose: protect part of the profit while the rest aims for a bigger move
It is often used when you expect a trend to continue and keep part of the position. In a quiet range market, profit may stay small.
Pros and cons of a partial close
| Point | Pros | Cons |
|---|---|---|
| Profit | Part is locked in, and profit remains if the price reverses | When the price runs far, profit is smaller than holding it all |
| Psychology | Less worry about losing floating profit, so it is easier to hold | You may close too early and regret it |
| Cost | - | Costs more on accounts that charge a commission per close |
| Average | - | Taking profit early can lower your average return |
Which is better depends on your method and the market. Note that the earlier a method takes profit, the lower its average return tends to be.
Calculation example: closing a 1.0 lot in halves
Take 1.0 lot of EURUSD bought in a USD account. 1 pip is 10 USD, and the stop-loss is placed at −50 pips (−500 USD) in this hypothetical example.
| Pattern | How it is closed | Total |
|---|---|---|
| 1. Close everything at once | 1.0 lot at +100 pips: 100 × 10 | +1,000 USD |
| 2. Close in halves | 0.5 lot at +50 pips: 50 × 5 = 250. The rest at +150 pips: 150 × 5 = 750 | +1,000 USD |
| 3. Close half, then exit at breakeven | 0.5 lot at +50 pips: +250. The rest at breakeven: 0 | +250 USD |
| 4. No partial close, exit at breakeven | Rose to +50 pips, then closed everything at breakeven: 0 | 0 USD |
Checking the math: 1 is 100 × 10 = 1,000 USD, and 2 is 250 + 750 = 1,000 USD. 3 is 250 + 0 = 250 USD, and 4 is 0 USD.
Patterns 1 and 2 give the same result, but if the price reverses along the way, 3 and 4 differ. In 3, 250 USD remains, while in 4 nothing remains.
When the price reverses and when it runs: how to read risk-reward
Even with the same price move, the result differs with or without a partial close. Compare closing half at +50 pips with not closing any.
- Ran to +150 pips: without a partial close 1.0 × 150 × 10 = +1,500 USD, with a half close 250 + 750 = +1,000 USD
- Fell back to breakeven: without a partial close 0 USD, with a half close +250 USD
- Reversed to the stop-loss after +50: without a partial close −500 USD, with a half close 250 − 250 = 0 USD
In terms of risk-reward, taking half off reduces your loss. If you lock in 250 USD at +50 pips, the total is 0 USD even if the rest is stopped out at −250 USD.
If you also move the stop-loss on the rest to breakeven, at least +250 USD remains even in the worst case. This calculation excludes slippage.
On the other hand, when the price runs far, holding everything gives more. For how to think about take-profit and stop-loss distances, see the related column.
Steps for a partial close in MT5 (desktop)
In MT5, you can close just part of a position by reducing the Volume on the close screen and executing. Screen labels are those of the standard English version.
- 1
Right-click the position
In the Trade tab of the Toolbox, right-click the position you want to close.
- 2
Choose Close
Choose Close from the menu to open the order window. Double-clicking the position also opens it.
- 3
Change the Volume
In the order window, change Volume to the lots you want to close. In the example, from 1.00 to 0.50.
- 4
Click the close button
Click the close button, and only that volume is closed.
- 5
Check what remains
In the Trade tab, check that the position with the reduced volume remains.
Before you execute, recheck the volume to close and the target position. It closes at market, so the fill price can differ slightly.
It is safer to try the operation on a demo account first. The phone app screens are different, so see the column on the app.
How to set your partial close rules
Write the rule in numbers, for example "close half at +50 pips, the same as the stop-loss distance". A profit distance equal to the stop-loss distance is sometimes called 1R.
- Decide beforehand at how many pips or R to close what share
- Also decide whether to move the stop-loss on the rest to breakeven after closing
- You cannot split below the minimum lot unit. It is 0.01 lot at many brokers, but it differs by broker
- Do not split too much. The more times you do it, the more cost and management effort it takes
For the balance between take-profit and stop-loss distances, the related column on risk-reward is a useful reference. Recording your rules in a trade log makes them easier to review.
3 common mistakes with partial closes
- Closing too early: almost no profit remains, and only the stop-loss loss stands out
- Not moving the stop-loss: the rest reverses and you end up at a loss anyway
- Changing the volume on a whim: the rules change every time, so you cannot review the results
For example, even if you close 0.5 lot at +5 pips, you lock in only 25 USD. If the rest is stopped out at −50 pips, that is −250 USD, for a total of −225 USD.
Closing too early does not reduce losses enough. Check whether you can wait until the level your rules set.
Partial closes and cashback
- Cashback is often based on trading volume, but the calculation differs by broker
- How an increase in the number of trades from partial closes is treated also differs by broker
- The cashback amount is not yet confirmed and will be posted on each broker page at launch
- Do not increase the number of partial closes for the sake of cashback
Enter lots and pips to check the profit and loss when you close. See the numbers before a partial close.
Calculate profit and lossFAQ
Q.What is a partial close?
It means closing only part of the position you hold. For example, if you close 0.5 lot of a 1.0-lot position, 0.5 lot remains. Because you lock in profit in portions, it is also called taking profit in stages.
Q.How do I do a partial close in MT5?
In the Trade tab of the Toolbox, right-click the position and choose Close, then change Volume in the order window to the lots you want to close and execute. How it is shown can differ depending on your account type.
Q.Is a partial close better than not doing one?
It cannot be said either way. Profit tends to remain if the price reverses, but when it runs far, you get less than holding it all. In the example, at +150 pips a half close gave +1,000 USD and holding everything gave +1,500 USD.
Q.Does more trades from partial closes increase cashback?
The calculation differs by broker, so it cannot be said either way. The cashback amount is not yet confirmed and will be posted on each broker page at launch. We do not recommend increasing partial closes for the sake of cashback.
This article is for information purposes only and is not investment advice. Conditions may change, so please check each broker's official page for the latest information. Offshore FX and CFD trading carries a risk of losses exceeding your principal.
