Question: What is the difference between Hedged and Netted Account in cTrader?
The difference between Hedged Account and Netted Account is as below.
Hedged Account – cTrader
- You can open long(Buy) and short(Sell) position, at the same time, for the same symbols.
- You can have multiple positions, at the same time, for the same symbols.
Example
With this account type, if you trade like…
- Buy 1 lot for EURUSD
- Sell 0.5 lot for EURUSD
- Sell 0.5 lot for EURUSD
Eventually, you will have 3 opened positions. You can manage the positions individually.
Netted Account – cTrader
- You can have only one position, at the same time, for the same symbols.
- Opposite positions(Buy and Sell) will selloff each other according to the trading volume, for the same symbols.
Example
With this account type, if you trade like…
- Buy 1 lot for EURUSD
- Sell 0.5 lot for EURUSD
- Sell 0.5 lot for EURUSD
Eventually, you will not have any open positions. In this case, you buy 1 lot of EURUSD, close half of the position and close rest of it.
How to select the account types?
It’s often that you can not choose these account types, since the brokers decide the option.
For a Demo account, you will have the option when you open one.