Which order accounting mode is available at LBX? (Hedging vs. Netting)

Modified on Tue, 28 Apr at 2:26 AM

When opening a trading account, traders need to understand the distinction between two primary position accounting systems. This choice determines whether you can open "locks" (hedged positions), average your entries, or trade in opposite directions for the same instrument simultaneously.

This article breaks down the differences between these methods and explains the execution rules at LBX.

What is Netting?

The Netting system is the classic exchange-based method. Its core principle is simple: you can only have one open position for a specific instrument at any given time.

How it works: If you buy 1 lot of EURUSD and then buy another 1 lot, you will have a single position with a total volume of 2 lots. If you then decide to sell 1 lot while holding that 2-lot buy position, your total volume will simply decrease to 1 lot. If you sell 2 lots, your position will close to zero.

What is Hedging?

The Hedging system allows you to hold an unlimited number of positions for the same instrument, including opposite directions (buying and selling at the same time).

How it works: You can buy 1 lot of EURUSD and immediately open a sell position for 1 lot of EURUSD. In your terminal, these will appear as two separate trades. This technique is often referred to as "locking" or "hedging."

Order execution at LBX

At LBX, we provide our traders with maximum flexibility. Our trading servers use the Hedging accounting system by default. Please note that we do not offer Netting accounts at this time.

Advantages of Hedging at LBX:

Strategy independence: You can run multiple trading robots (EAs) on the same instrument simultaneously, and they will not interfere with each other's orders.
Flexible risk management: You can open counter-positions to protect profits or navigate market volatility without immediately closing your primary trade.
Individual accounting: Each trade has its own unique ticket number, opening time, and independent Stop Loss and Take Profit settings.