Hedging vs Netting Accounts in MT5: Which One Your Expert Advisor Needs and How to Check

The two modes in plain language

MetaTrader 5 supports two ways of accounting for open trades. In hedging mode, each trade you open is its own position. You can hold a buy and a sell on the same symbol at the same time, and each has its own stop loss and take profit. In netting mode, the terminal keeps a single position per symbol. If you hold a buy of 1 lot and then open a sell of 1 lot, the two cancel and you have no position. MetaQuotes explains positions, deals and the difference between the modes in its help pages on trading operations.

What changes for an Expert Advisor

An EA that opens trades in one direction with its own stop loss behaves much the same in both modes, as long as it does not open a second trade on a symbol while the first is open. As soon as an EA adds to a position, or holds opposite trades, the modes diverge.

• Grid EAs add positions as price moves. On a hedging account each level is its own trade. On a netting account the levels merge into one position with an average price, so the EA's per-level take profit and stop loss logic breaks.
• Hedge and recovery EAs open an opposite trade to lock a loss. On a netting account the opposite trade simply closes the original, so nothing is locked.
• Two EAs on one symbol can fight on a netting account: one buys while the other sells, and the net position shrinks or flips. On a hedging account both trades stay open. Use separate magic numbers and be careful anyway.
• Simple one-trade EAs that wait for a trade to close before opening another work in either mode.
• Partial closes and trailing stops are applied per trade on hedging accounts and to the whole position on netting accounts.

How to check your account mode

1. 1

   Step 1: Ask the broker or read the account details

   The broker's client area or account opening page usually states whether the account is hedging or netting. Support can confirm in writing.

2. 2

   Step 2: Look at the trade tab

   On a hedging account, opening two trades on one symbol shows two lines in the Trade tab. On a netting account, a second trade in the same direction increases the volume of the single line.

3. 3

   Step 3: Test on a demo with the same account type

   Open a demo with the same broker and account type, open a buy and then a sell on the same symbol, and watch whether both stay open. Close them both afterwards.

4. 4

   Step 4: Read the EA's manual

   It will say whether it needs hedging, whether it supports netting, and what to do if the account type is wrong.

Account mode is set when the account is created. If you have the wrong type, the usual fix is to open a new account of the right type with the broker, not to change a setting. Note that many brokers offer both modes on the same platform, so ask for the one that suits your EA.

Margin and risk on hedged positions

On a hedging account, holding a buy and a sell of equal size on one symbol locks the price exposure, but not the cost. Spread has been paid on both trades, swap accrues on both, and the margin treatment depends on the broker. Some charge no margin on the hedged volume, others charge for both sides. A locked position is also not a closed position: when you remove one side, the other is exposed. EU brokers apply the same leverage limits to either mode, as covered in EA trading in Europe.

A recovery EA that hedges and then re-enters can look safe in a backtest and still fail in practice when the spread widens or the broker restricts hedging. Test it on the broker's account type, as explained in the grid and martingale risks.

Which one should you choose?

If the EA's page does not state the account type, ask the seller before you pay. Our buying checklist includes this question, and the MT5 Expert Advisors guide shows where it fits in the setup.

A worked example: the same grid on two account types

Take a grid EA that buys 0.10 lots of EURUSD at 1.1000, adds another 0.10 at 1.0980 and another at 1.0960, each with its own take profit 20 pips above its entry. On a hedging account there are three separate positions. When price recovers to 1.0980 the second position hits its take profit and closes alone, banking 20 pips on 0.10 lots, about 1.74 euros at 1.15. On a netting account the three buys merge into one 0.30 lot position with an average entry near 1.0980. The EA's separate take profits no longer exist, so the whole position closes only when the single net target is reached. The strategy the author tested is not the strategy you are running.

The same difference appears with partial profit-taking, trailing stops per entry and any rule that manages individual tickets. If the manual talks about managing each order or level separately, assume it needs hedging.

Common mistakes with account mode

• Buying a grid or hedge EA before checking the account type with the broker.
• Assuming a demo account has the same mode as the live one. Check each separately.
• Opening a second account with the same broker and not noticing it is a different mode.
• Running an EA and manual trades on the same symbol on a netting account, so that a manual order changes the EA's position.
• Expecting a locked position to carry no risk. Spread and swap are paid on both sides, and the locked pair is exposed when one side closes.
• Ignoring the broker's rules on hedging. Some limit or forbid opposite positions.