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, which means NFA-registered Retail Foreign Exchange Dealers, who have to adhere to very strict rules and regulations, can provide the cTrader platform to their US clients.
Simple Account Administration
Netting Accounts are simply an account attribute, which can be set up upon account creation. For brokers who offer both Hedging and Netting account types – both operate seamlessly within a single environment, and share the exact same settings and broker reporting tools. The trading interface and the impeccable user experience are also shared.
Netting and FIFO Logic
With cTrader netting accounts, traders hold only one open position per symbol at a time. Subsequent orders are being aggregated into the already existent position, hence increasing or decreasing its volume. Orders leading to exposure reduction due to reduction of volume create closing deals, which offset opening deals using the FIFO (First In First Out) method. This offsetting rule means 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. The feature is often used by international brokers too.
Access Different Types of Traders
This account type is preferred by some traders, especially high-net-worth with institutional experience, who want to incorporate netting into their trading strategy.
A Single Platform for all Markets
You are able to offer both – hedging and netting accounts, through the same platform that enables you to manage your whole business, hence reducing operational costs.
Traders can too manage both hedging and netting accounts from one single environment. They can also switch between the two account types in a matter of a click, with no unnecessary platform shifts or restarts.