Netting is the process of consolidating positions in the same instrument and on the same account that have opposite directions and thus fully or partially reduce the total market exposure. It is the process in which a buy and sell position are matched to close each other out or yield a remainder if they have different notionals. As an account may have many positions in the same instrument opened methods at various times, the netting can be done with different ways (Netting Methods) and times (Netting Modes).
Which position netting modes are available at Saxo?
For clients, two Netting Modes are available. In both cases, the timing of the trade settlement in unchanged but open and closed positions are displayed differently.
Real-time / Intraday Netting (Recommended)
The positions are netted immediately upon execution and will disappear from the Positions module and will be visible as new entries in the Closed Positions module.
End-of-day Netting (Legacy)
After trade execution, the positions continue to show open status in the Positions module and visible until end-of-day processing. The Closed Positions module is not available in this Netting Mode.
You can update the netting mode by going to the main menu 
> Settings > Platform settings > Platform > Real-time netting.
Which position netting methods are available at Saxo?
- Methods available for Saxo Bank A/S clients
- Methods available for Saxo Bank A/S clients resident in the MENA region
Methods available for Saxo Bank A/S clients
One netting method is available:
FIFO
If a new trade has the opposite direction of an existing position in the same instrument, First In First Out Netting closes eligible open positions in order of their creation date/time using the oldest ones first.
Methods available for Saxo Bank A/S clients resident in the MENA region
Two netting methods are available:
FIFO
If a new trade has the opposite direction of an existing position in the same instrument, First In First Out Netting closes eligible open positions in order of their creation date/time using the oldest ones first.
Weighted-average
With Weighted-average Netting, open positions are shown at their volume-weighted average cost i.e. a synthetic Position Open Price is calculated and displayed.
If a new trade has the opposite direction of an existing position in the same instrument, the P&L is calculated using the synthetic Position Open Price.
This simplified example illustrates how the Netting Methods work:
As illustrated above, the selected Netting Method can influence the split between realised and unrealised P&L. However, the overall P&L of the entire position remains the same regardless of the Netting Method used.
Comparison of available Netting Modes & Methods
