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. All such positions are opened separately on the Trading 212 platform and are executed at the current market price.

By contrast, when trading in the Aggregating mode, you can only have one position opened with a certain instrument. Each new position with this instrument is added to the previous one and the price is averaged.
Trading 212
What are the benefits of hedging?

Risk management is a vital part of trading strategies 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, both long and short, with the same instrument. This separate positioning allows for the adding to or the partial closing of any position, which helps secure part of your profit and limit potential losses, i.e. it is a way to control the inherent risk.

What is netting?

Netting is the consolidation of the values of two or more positions in order to create a single value. The netting option is available only in the Hedging mode: you cannot apply it when trading in the Aggregating mode. As its main benefit, netting enables you to partially or fully close the position without having to pay the spread twice. In the Trading 212 platform, there are two netting options to choose from:

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 from the spread for the netted quantity.

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

Trading 212
Two trading modes, one platform

You can easily switch between the two modes, Aggregating and Hedging, in the settings menu. Bear in mind that mode changes will take place only if there are no current open positions and Pending Orders.


Trading 212
Comparison table
Features
Specific for Hedging mode
Specific for Aggregating mode
Opening multiple positions for the same instrument
Netting
Entry pending orders
(Limit/Stop, OCO,
If/Then)
(Limit/Stop, OCO,
If/Then)
Associated pending orders
(Trailing Stop,
Profit/Loss)
(Trailing Stop,
Profit/Loss)
Reversing the positions

Don't have an account yet?

Trading may not be suitable for everyone and can result in the loss of all your invested capital.

Icons/ic_chatCreated with Sketch.
Icons/ic_arrow_downCreated with Sketch.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning
Icons/ic_arrow_downCreated with Sketch.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.