I think it’s common to make a settlement when trading on MT4 or MT5, but many people don’t know that it is possible to make a partial settlement. You can’t use this unless certain conditions are met, but it’s very convenient, so you should keep it in mind.
What is installment payment?
Split settlement is a method of partially settlement of some trading volume among the positions currently held. However, split settlement is not possible for positions with 0.01 lot. The reason is that the minimum lot is 0.01 and it cannot be divided further. For splitting, for example, in the case of “1 lot”, you can take the method of unsettled 0.5 lots. Of course, it is also OK to divide 1 lot into 0.75 lots and 0.25 lots for settlement.
The advantage of installment payments is that you can lock in your profits. You never know when a trade will happen. Even if there is a profit of 100 pips, there are many patterns in which it all comes back due to sudden economic indicators and ends in a draw. Unsettled profit is unrealized profit, but if it returns, there will be no profit. If you make a split payment and secure a profit first, the remaining position will not have a negative balance due to the large profit that has already been settled. You can also use the hand that says you hold the rest of the position forever.
The disadvantage of paying in installments is that you often regret it by paying it early. For example, if the current trade has a profit of 100 pips, it is normal to get 200 pips or 300 pips if there is a strong trend. When there is a trend, it is often a waste to make a bad settlement and finish it, so you need the ability to read the market. When extending the profit of the remaining positions with split settlement, profits may come out at a momentum that far exceeds the forecast.
How to pay in installments
I will explain how to actually make a split payment from MT4/MT5. If you remember the partial settlement, it will be easier to win because the range mentioned above will be considerably expanded. If you are doing discretionary trading, please remember.
Open the terminal screen by pressing the “Ctrl” key and the “T” key. Select “Change or cancel order” for “Position you want to pay in installments”. Then the order will open.
Click on the “Modify or cancel order” part of the order type and select the market order. Then enter the quantity you want to pay in installments. Finally, confirm the “market settlement” and complete the split settlement.
First, open the trade screen and swipe the right corner of the currency pair you want to settle to the left to display the following. Tap the check button.
The settlement screen will be displayed, so change the position amount to the number of positions you want to settle. After confirming that the number of positions you want to close has been changed, tap the Close button. Payment is completed.
Conditions for partial settlement
Partial payments are not possible under all circumstances. Please note that it is not possible if the following conditions are met. If any of the above applies, you can only pay the full amount.
lot is 0.01
If the trading volume is only 0.01, there is no way to split it. In this case, partial payment cannot be used, so only full payment is possible.
Market orders only
Only market orders can be made when this split payment is possible. If you place a limit order, you cannot do so, so be careful. If you want to do the same thing as a partial close with a limit order, it is preferable to place limit orders in a scattered manner.