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In this article, we explain how to avoid that positions in the same instrument and in opposite directions (Long/short or bought/sold) "reduce" or "cancel" each other. |
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Warning Keeping positions with opposite direction opened can imply financing costs. |
Clients can choose if a position is available for netting using the related orders and the 'Force Open' features. As such, clients can have control over position netting.
Related Orders (End-of-day FIFO only)
Related order will result in its associated position not being available for netting.
The following icon is indicating that a position has a related order:
Force Open Feature (Real-time FIFO only)
Any FX spot and CFD positions you create with the 'Force Open' feature enabled will allow you to hold positions in opposite directions in the same instrument i.e., not netting each other. This feature is only available with Real-time FIFO Netting.
How does Force Open Feature work?
Force Open can only be set up to On at position opening, it is therefore not possible to turn On Force Open for an existing position. Consequently, turning Off Force Open is irreversible.
- 'Force Open' allows holding individual long and short positions in the same instrument.
- Individual positions with 'Force Open' On can be closed separately.
- Individual positions with Force Open On can be associated with Related Orders
- It is possible to turn Off Force Open from the Positions module. This will make the position available
for immediate netting using the FIFO method (First In First Out Netting closes eligible open positions in order of their creation date/time using the oldest ones first). Such change is irreversible. If the position is netted, it is listed in Closed Positions.
N.B.1 Any position opened prior to enabling the Force Open Feature will be born with Force
Open = Off
N.B.2 in the event of a Close Out, Force Open Feature would be automatically switched to Off
How to enable Force Open?
1. Login to your account
2. Go to the menu > Settings > Platform settings > Platform > Position netting.
‘Enable force Open of positions by default’ ticked would indicate that any new FX or CFD order would have Force Open = On by default.
‘Show force open in ticket and positions’ ticked would make the Force Open field visible in the Trade Ticket and in the Positions module: