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.
Example:
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
Example:
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
