Netting is the process of consolidation of positions that occurs when two positions in the same instrument and on same account are in opposite direction and thus fully or partially reduces the total market exposure in the instrument. It is the process in which a buy position and sell position are matched to remove both or yield a remainder, if one is bigger than the other.
This netting will take place unless one or both of the existing positions have Related Orders pending on them. It should be noted that a Related Order can be partially filled which would result in the original relation being broken and cause the existing position to be wholly or partially closed out. Any Related Order to the original position will thereby be cancelled and will work independently for the remaining amount to be filled, but the client can then place new Related Orders to the remaining exposure once netting is completed at the end of the trading day.
Since an account may have many positions in the same instrument opened at various times, the client may choose to close them explicitly or implicitly.
Time of netting
For clients, two netting modes are available. In both cases, final settlement still occurs at end of day, but it can be practical to only see active open positions.
End of day (Default)
With End of day netting (EOD) , positions remain open and visible until the nightly end of day (EOD) settlement processing.
Real – time netting (Intraday)
The main difference with Intraday netting is that positions are netted immediately on execution. They disappear from the Positions lists, details are available as new entries in the Closed Positions list.
Please read more about Real – time netting here
Enable / Disable Real Time Netting
Enable real-time netting on from Settings in any of the platforms. This is an opt-in feature (will not be enabled by default) which can be disabled by the client – thus returning to the standard EOD netting – at any time.