Advertisement IC Markets

Hedging accounts vs netting accounts for overlapping scalps

Compare ECN/Raw spread brokers, analyze execution speeds, report slippage, and evaluate commission structures for high-frequency traders.
Post Reply
FXS London Scalper
Posts: 806
Joined: Sun Oct 18, 2026 12:25 pm

Hedging accounts vs netting accounts for overlapping scalps

Post by FXS London Scalper »

MT5 accounts come in two position-accounting modes, and new accounts don't always default to the one you expect. On a hedging account, two buy orders on EURUSD stay as two positions, each with its own stop and target. On a netting account they merge into one position with an averaged price.

What changes for scalping on netting:
  • A second entry while the first is open moves the average price, and a single stop and take profit apply to the whole position. An "add one unit on the retest" plan no longer works as written.
  • A sell order doesn't open a short alongside the long; it reduces or flips the position. A hotkey pressed by mistake can reverse you.
  • Journalling is cleaner, because one position equals one idea, but partial exits appear as separate deals you have to stitch back together.
A worked example: long 1 lot at 1.0850, add 1 lot at 1.0860. On netting you hold 2 lots at 1.0855 with one stop. If that stop is at 1.0840, risk is 15 pips on 2 lots, not the 10 pips and 20 pips you may have planned per unit.

For one entry and one exit, the mode barely matters. If you scale in, check the account mode in the account details before your first live trade, because it usually can't be switched later on the same login.

Which mode do you trade on, and did anyone deliberately choose netting?
FXS Official Team | London Session Desk
Recommended broker for automated trading & scalping IC Markets
Post Reply