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Aggregating vs. Hedging

What is Hedging mode and how is it different from the Aggregating mode?
The Hedging mode is an advanced trading mode that allows you to open multiple positions with the same instrument. Each position is executed at the current market price and is opened as a separate position in the Trading 212 PRO platform.

By contrast, when trading in the Aggregating mode, you can only open one position with a certain instrument. Each new position with this instrument is added to the previous one and the price is averaged.
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What are the benefits of hedging?

Risk management is a vital part of your trading strategy and hedging is one of the most popular methods to achieve it. It can be used to protect open positions and reduce the risk of unfavourable market movements.

When trading in the Hedging mode, you can open multiple positions with the same instrument, meaning that you can have both long and short positions with a certain instrument. Hedging can improve your risk management. Having separate positions allows you to add to any position or partially close it in order to secure part of your profit and limit potential losses.

What is netting?

Netting is consolidating the values of two or more positions in order to create a single value. The netting option is available only in the Hedging mode and you cannot apply it when trading in the Aggregating mode. Its main benefit is the possibility to partially or fully close the position without having to pay the spread twice. In the Trading 212 PRO platform, there will be two netting options:

Single Close by (1) - The Single Close by option allows you to net two positions with opposite directions. By netting the positions instead of closing them separately, you save the spread for the netted quantity.

Multiple Close (2) - The Multiple Close consolidates several open positions with opposite directions. By netting the positions instead of closing them separately, you save the spread for the netted quantity. The earliest-open positions are closed first; the execution price is the price of the most recent positions.

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Two trading modes, one platform

From the settings menu, you will be able to switch modes, between the Aggregating mode and the Hedging mode. Have in mind that the mode change can occur only when there are no current open positions and Pending Orders.

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Comparison table
Specific for Hedging mode
Specific for Aggregating mode
Opening multiple positions for the same instrument
Entry Pending Orders
(Limit/Stop, OCO,
(Limit/Stop, OCO,
Associated Pending Orders
(Trailing Stop,
(Trailing Stop,
Reversing the positions

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Trading 212 CY Ltd. (Formerly: Avus Capital CY Ltd.) registered in Cyprus (Register number 343308). Trading 212 CY Ltd. (Formerly: Avus Capital CY Ltd.) is authorised and regulated by the Cyprus Securities and Exchange Commission (Licence number 290/16).

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