FIFO Netting Regulatory Requirements
cTrader offers netting accounts that follow the First In First Out (FIFO) rule. The implementation of this feature is in accordance with CFTC and NFA regulations, allowing NFA registered Retail Foreign Exchange Dealers to adhere to very strict rulings and provide the popular cTrader platform to their US clients.
Simple Account Administration
Netting accounts are simply an account attribute which can be set upon account creation. For brokers who offer both Hedging and Nettings account types, both operate seamlessly within a single environment and share the exact same settings, broker reporting tools, trading interface and user experience.
Netting and FIFO Logic
With cTrader netting accounts traders hold only one open position per symbol at any one time. Subsequent orders result in either increasing or decreasing volume of the existing position by aggregating them into the existing position. Orders resulting to reducing exposure by reducing the volume of an open positions create closing deals which offset opening deals using the FIFO (First In First Out) offsetting rule, meaning that the oldest deals are closed first.
Benefits of cTrader Netting Accounts
Netting accounts are not just for NFA registered retail brokers operating in the United States, uses cases of this functionality exist for international brokers too.
Access Different Types of Traders
This account type is preferred by some traders, particularly high net worth traders with institutional experience who want to incorporate netting into their risk management or trading strategy.
A Single Platform for all Markets
You are able to offer both hedging and netting accounts through the same platform enabling you to manage your whole business from a single environment, reducing your operational costs.
Traders can manage both hedging and netting accounts from a single environment and switch between the two account types with just two clicks and no need to restart or change to another platform.