Close-by orders in MT4: saving spread or just shuffling it

[Amanhasnoname]

MT4 offers a close-by function that closes a position against an opposite one on the same symbol. It was designed for hedging accounts, to reduce the number of trades and, on some brokers, to lower costs.

Benefits depend on the broker's handling. In some setups, closing two opposite tickets via close-by avoids paying the spread twice, since no market order is executed. In others, the platform simply closes both at their respective prices, resulting in the same economics.

Commission treatment differs too. Some brokers charge commission on each ticket's close even with close-by, while others waive one side.

For scalpers who use locks occasionally, the function is worth testing. Open two small opposite positions, close one with close-by, and compare the resulting P&L with closing them separately at market.

Also check whether the broker restricts the function. Some disable it, and in rare cases it may be flagged in terms.

Knowing the real cost difference can add or remove a few tenths of a pip per hedge cycle.

Does the broker's close-by function reduce cost compared with two market closes?