From May 20, 2019, the ability to select the method of accounting positions is added for MT5-Real and MT5-Demo accounts - Netting or Hedge. The choice of the way to account for positions is mandatory when opening an account. To do this, you just need to tick the system that interests you.
Now at Grand Capital, all MT5 accounts are opened by default with a hedging accounting system. If you already have an MT5 account, you need to close all positions on the account in order to change the accounting system from hedging to netting and after that contact technical support with a request to change the system.
What to choose?
Netting position accounting system is traditional for stock trading. Its main feature is that the volume and financial result of an open position for a single instrument is calculated by aggregating the volume and financial result of all newly opened or closed positions. Any further opening or closing of a position on this instrument leads to a proportional change in the volume and financial result within the framework of the existing single position.
The hedging system is more flexible and simple. It was created taking into account the needs of traders, for example, it allows conducting multidirectional trading.
- The instrument can open a lot of positions, including locking, that is, open a position in the opposite direction if the price for the first position goes against the trader.
- If there is an open position on the trading instrument and the trader makes a new deal (or a pending order is triggered), a new position is opened. The existing position doesn't change.
Depending on the position accounting system chosen, some functions of the platform work differently. Read more about it here: https://www.mql5.com/en/articles/2299.