A partial close is the act of closing part of an open position while leaving the rest running. The trader exits a fraction of the lot size at a defined level — typically the first profit target — and lets the remainder ride toward a second target, a trailing stop, or a discretionary exit. It is a hybrid between a fixed take-profit and a runner approach: the partial guarantees some realized P&L from the trade, while the residual leaves room for the occasional outlier winner.
Common patterns: close 50% at +1R and move stop to breakeven on the remainder; close 33% at +1R, 33% at +2R, leave 33% trailing; or close enough to cover the original risk in cash and run the rest as a "free" position.
Formula
Realized P&L = Closed lots x pip distance x pip value per lot
Residual exposure = Original lots - Closed lots
Effective stop on residual (after BE move) = 0R risk
Worked example
EUR/USD long, 0.30 lots at 1.0850, stop at 1.0820 (initial risk: $90). Plan: close 50% at +1R, breakeven on the rest.
- Price hits 1.0880 (+30 pips, +1R). Close 0.15 lots: realized = 30 x $1.50 = $45.
- Move stop on remaining 0.15 lots to entry (1.0850). Worst case from here: $0 on the runner.
- Trade is now de-risked: $45 banked, residual position has zero risk.
- Price extends to 1.0940 and trailing stop captures 0.15 lots at 1.0925: additional $33.75. Total trade P&L: $78.75 (vs. $90 if full position had hit a 2R fixed TP).
Why it matters
Partials make the equity curve smoother by converting variance into realized cash earlier in the trade lifecycle. The cost is upside: a system that always partials at +1R will systematically underperform a fixed +3R system on the rare large winners. Whether partials improve total return depends on the strategy's MFE distribution — partial-friendly strategies are ones where most trades stall between +1R and +2R.
Common pitfalls
- Partials complicate journal accounting — a good auto-sync EA captures every partial as a separate event, not as a single weighted-average exit.
- Partialing every trade reflexively, even on high-conviction setups where the full position should run.
- Forgetting that commission is charged on the closed portion, eroding small partials on tight scalps.