Hedging and netting

A hedging account can hold a buy and a sell on the same symbol at once; a netting account merges them into one position.

The account type is set by the broker and shown in the platform title. It changes how opposite orders behave.

Some brokers refuse an order that would open an opposite position even on an account labelled hedging, and return a message saying so.

Also called: netting account

Related terms

PositionExecution

A definition, not financial advice. Trading carries a risk of loss.

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