If you are opening a new account with cTrader you may be wondering which account type to open, Hedged or netted, this article will help you decide which one to choose.
What is a Hedging Account With cTrader
A hedged account will allow you to have multiple positions open at the same time in opposite directions, so you will be able to manage them all individually.
- You can have Buy (long) or Sell (short) positions open at the same time for the same symbol.
- You can have multiple positions open at the same time for the same symbol.
With a Hedged account you can submit the following orders:
- Buy 2 lots for EURUSD
- Buy 1 lot for EURUSD
- Sell 0.5 lots for EURUSD
You will have all 3 positions opened at the same time and you can manage them individually.
What is a Netting Account With cTrader
With a Netting account, you can only have a single position open at any time for the same symbol.
- You can only have one position open at the same time, for the same symbol
- Opposite positions (Buy and Sell) will sell off each other according to the trading volume for the same symbol
With this type of account, if you try and open multiple positions for the same symbol then eventually you will have no open positions.
- Sell 1 lot for EURUSD
- Buy 0.5 lots for EURUSD
- BUY 0.5 lots for EURUSD
Which Broker Supports Netting Accounts
This is one of the few reputable brokers that we know that support netting accounts.