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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. |
You can choose if a position is available for netting using the 'Force Open' feature and related orders. This allows you control over how position netting is applied to single trades.
End-of-day FIFO Netting (Legacy Mode): Related orders
A related order will result in its associated position not being available for netting.
Please note that End-of-day (EOD) First-in first-out (FIFO) is a legacy netting mode which will be phased out in future. If you want to avoid netting, you should consider switching to real-time FIFO netting mode.
N.B.: The 'Force Open' feature outlined under real-time FIFO netting is not available using the EOD FIFO netting mode.
Real-time FIFO netting: 'Force Open' & related orders
Any FX spot and CFD positions created with the 'Force Open' set to ON allow holding positions in the same instrument with opposite directions such that they will not net each other out. This feature is only available with real-time FIFO netting mode.
'Force Open' status can only be set when entering into a position. 'Force Open' status cannot be switched on for existing positions after trade execution. Additionally, turning off the 'Force Open' status for an existing position is irreversible.
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'Force Ope'n allows holding individual long and short positions in the same instrument.
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Individual positions with 'Force Open' On can be closed separately.
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Related orders can be placed against individual positions in 'Force Open' status.
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The 'Force Open' status for individual positions can be turned off in the Positions module. This will make the position available for immediate netting using the FIFO (First-in, First-out) netting method and close eligible open positions in order of their creation date/time using the oldest first. Turning off the 'Force Open' status is irreversible. Once the position is netted, it is shown under Closed Positions.
Any position opened prior to enabling the 'Force Open' feature will be created with the 'Force Open' status set to OFF. In the event of a Close Out, the 'Force Open' status of remaining positions will automatically be switched to OFF.
How to enable Force Open?
- Log in to your account
- Go to the main menu > Platform Settings > Platform & trading
- Ensure that FIFO is selected under Real-time netting
- Check Show force open in ticket and positions
Enable force open of positions by default will automatically set Force Open = ON for any new FX or CFD orders. Once Show force open in ticket and positions is checked, the Force Open field will be visible in the Trade Ticket and Positions module: