The “Close By” feature allows traders to close two hedged orders by cancelling each other out. The benefit of doing this is that only one spread and one commission charges is payed for two orders. In contrast, if two hedged orders are closed independently then two spreads and two commission charges will be paid and hence the trade cost is paid twice.
Say for instance you have two hedged orders floating i.e. same symbol and same volume but of different direction.
Right click one of the order and click “Modify or Delete Order”.
Change Type to “Close by”.
Attention: The “Close by” option will only be available if there is a second hedged positions.
Select the order of opposite direction,
then click “Close #___ by #___” button.
The two hedged orders should be successfully closed each other out.
You shall see the order which was selected to close hedge against has the comment “close hedge by #___”.
If the two orders you close against does not have exactly the same volume, the two orders will continue to close hedge, whereas the remaining volume will reopen as another order.
For instance, two open orders of the same symbol but different volume.
After close by, an order will has “close hedge by” comment, while another will has “partial close” comment.
The remaining volume will be opened as another order with new order number.