Operations > Order Entry >
Closing a Position or ATM Strategy Position
Closing a position or ATM Strategy with the Close button
In all NinjaTrader order entry windows there are "CLOSE" action buttons which will close a position or an ATM Strategy depending on which mouse button is pressed (the left mouse button will close the current position and cancel any working orders associated with the instrument/account combination and the middle mouse button (scroll wheel) will close the selected active ATM Strategy position only).
When a position or ATM Strategy position is closed, NinjaTrader goes through the following process: (Assume we are long on the S&P E-mini contract at an entry price of 1000.)
The exception are currencies (FOREX) where all working orders are cancelled and then a market order is submitted to close the position. (Does not apply to currencies with Interactive Brokers where the previously described process is used.)
Why not just submit a market order?
A lot of traders consume near 100% of their available margin. For example, you may have 1 contract position with one stop and target that consumes 90% of your margin. If you close a position by submitting a market order, the market order will get rejected due to insufficient funds and therefore cause grief if getting out of the position is critical.
The NinjaTrader approach offers several benefits:
This approach essentially guarantees the most efficient way to exit a position.