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.
What is a Close By Order?
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
Open 1.0 lot Buy position
Open 0.8 lot Sell position (hedging)
Manually close the 0.8 lot Sell position
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 Partner receives rebates for the full 3.6 lots
Scenario 2: Using Close By Method
Open 1.0 lot Buy position
Open 0.8 lot Sell position (hedging)
Right-click → Select Close By → Offset 0.8 lot opposite position
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 Partner 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 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 Partner rebate calculations
If maintaining full rebates for your Partner is important, consider using regular close methods instead