what is netting in forex?

@lawanf - 8 months ago - Forex Tools & Resources

I am trying to open a trading account with FxPro and their standard account is saying i should select either "netting" or "hedging" execution methods. So please what is the meaning of netting and how does it work?

@khumalo_thembisa - 8 months ago

Netting is an execution method where if you open several trades for the same instrument, they will not be displayed individually instead they will be summed up and displayed as one trade.

Netting is easier to understand for new traders and it keeps the trade panel decluttered and tidy.

Hedging on the other hand will display the trades individually and hedging also allows you to open a buy and sell order for the same instrument so that the profit from one, offsets the loss from the other.