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Position netting

An account model in which all trades in one instrument combine into a single position with one average entry price, rather than existing as separate tickets.

Under netting, buying 1 lot and then buying another gives you 2 lots at a blended price; selling 1 lot afterwards leaves 1 lot. There is only ever one position per instrument, and the platform shows an average entry rather than a list of entries.

This is the model required for US retail forex accounts under nfa-compliance-rule-2-43 and it is standard in institutional systems. It makes exposure obvious, which is its main advantage over hedging-mode: you cannot be simultaneously long and short and confused about which is which.

Stops and targets attach to the net position, so adding to a trade means revisiting the protective orders rather than letting each entry carry its own.

Example: buy 1 lot at 1.0800 and 1 lot at 1.0900. The netted position is 2 lots at an average of 1.0850. Breakeven is now 1.0850 for the whole thing, not two separate levels.

Related: hedging-mode, fifo-rule, metatrader, used-margin

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