Ea's and netting/hedging accounts.

Clappy21 2021.10.07 11:56

What is the difference between a hedging and a netting account? And will an EA be set up to work on one of them better than the other? Or can it function properly on both?

Thank-god Avwerosuoghene Odukudu 2021.10.07 14:47 #1

Clappy21:
What is the difference between a hedging and a netting account? And will an EA be set up to work on one of them better than the other? Or can it function properly on both?

For a hedging account, you can hold multiple positions simultaneously for a particular asset. Like Gold, for instance, you could open multiple positions to buy and sell at the same time. While for a Netting account, you can't open buy&sell position simultaneously for a particular asset.

If you buy Gold at 1700(0.01 lot) and probably it moves in your favour to 1720 & you decide to add an addition (0.01 lot buy) to your position, the net price would be where your new position would be opened with the total lot (0.02 buy at 1710)

With regards to the EA, you can backtest it or ask the programmer

Questions from Beginners MQL5 MT5 reversal function A demo account as

Clappy21 2021.10.07 17:29 #2

Awesome, that is very helpful. So if I understand you correctly, if the strategy involved placing a buy stop as well as a sell stop at the same time, I would require a hedging account? But if I only placed one trade and didn't place another until that one trade had been closed I wouldn't require a hedging account?

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Thank-god Avwerosuoghene Odukudu 2021.10.07 23:22 #3

Clappy21 #:
Awesome, that is very helpful. So if I understand you correctly, if the strategy involved placing a buy stop as well as a sell stop at the same time, I would require a hedging account? But if I only placed one trade and didn't place another until that one trade had been closed I wouldn't require a hedging account?

Somewhat yes, cause the hedging account type is also functional in scenario number 2.

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