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Understanding Close By Orders and Their Impact on Rebates

Updated yesterday

What is a Close By Order?

Close By is a unique position-closing feature available on MT4 and MT5 platforms. When you hold both buy and sell positions on the same currency pair within the same account, Close By allows these opposite positions to offset each other partially or completely, without requiring you to close each position separately.

In simple terms: Instead of closing two opposite positions individually, Close By lets them cancel each other out in a single action.

Regular Close vs. Close By: A Practical Comparison

Let's examine how these two methods differ using a real example with EUR/USD:

Scenario 1: Using Regular Close Method

  1. Open 1.0 lot Buy position

  2. Open 0.8 lot Sell position (hedging)

  3. Manually close the 0.8 lot Sell position

  4. Manually close the 1.0 lot Buy position (or remaining 0.2 lot)

Result:

  • Total spread costs: Approximately 3.6 transactions

  • System-recorded trading volume: 3.6 lots

  • Your Affiliate receives rebates for the full 3.6 lots

Scenario 2: Using Close By Method

  1. Open 1.0 lot Buy position

  2. Open 0.8 lot Sell position (hedging)

  3. Right-click → Select Close By → Offset 0.8 lot opposite position

  4. Manually close remaining 0.2 lot Buy position

Result:

  • Total spread costs: Approximately 1.8-2.0 transactions (50% savings)

  • System-recorded trading volume: Only about 2.0 lots

  • The 0.8 lot closed via Close By generates minimal trading volume

  • Your Affiliate receives rebates for only approximately 2.0 lots (missing 1.6 lots worth of rebates)

Why Does Close By Reduce Rebates?

When you use Close By, the system treats the offsetting positions as internal cancellations rather than actual market transactions. Since no new market order is executed for the offset portion, the trading volume that would normally generate rebates is not recorded. This directly reduces the rebate amount your Affiliate partner receives.

Key Takeaways

  • Close By is a cost-saving tool that reduces spread costs for traders

  • However, it significantly reduces recorded trading volume

  • This reduction directly impacts Affiliate rebate calculations

  • If maintaining full rebates for your Affiliate is important, consider using regular close methods instead

For questions about your trading operations or rebate calculations, please contact our support team via Live Chat.

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