Hedging Mode & Netting Mode
Platforms & ToolsHedging mode allows simultaneous long and short positions on one instrument; netting mode automatically combines them into one net position.
Hedging mode is an account setting that allows a trader to hold both a long and a short position on the same instrument simultaneously, tracked as separate tickets. Netting mode instead automatically combines same-instrument trades into a single net position, which is the required mode for US-regulated accounts and the default on many MT5 setups.
Which mode an account uses changes how certain strategies (like grid trading or direct hedging) need to be built, since a strategy relying on holding offsetting positions simply can't work the same way under netting.