Hedging and Aggregating are the two main modes on the Trading 212 CFD platform. In summary, Hedging in CFD trading involves opening offsetting positions to mitigate risk, while Aggregating involves consolidating multiple positions for easier management. Hedging is primarily focused on risk reduction, while aggregating is about gaining a comprehensive view of a trader's overall exposure.
What is Hedging mode?
Hedging mode allows you to open multiple positions with the same instrument. All positions will be opened separately and executed at the current market price. You can still reduce the size of individual positions by selecting your specific position and placing a market order for the desired quantity.
What is Aggregating mode?
Aggregating mode allows you to have only one position open with a certain instrument. Each new position with the same instrument will then be added to the previous one, and the price will be averaged.
How do I switch between Hedging and Aggregating modes?
You should just follow the steps below:
- Tap on the Account Menu
at the bottom right corner of your screen;
- Press Settings ⚙;
- Then open Trading preferences;
- Choose the desired trading mode.
Note: The trading mode can be changed when you don't have any open positions and pending orders. Otherwise, you need to close them first.