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.
On the Trading 212 CFD platform, you can choose between Hedging Mode and Aggregating Mode, depending on how you want to manage your trades.
How does each mode work?
- Hedging Mode lets you open multiple positions for the same instrument, allowing for more flexibility in managing risk.
- Aggregating Mode combines multiple trades of the same instrument into a single position, making portfolio management more straightforward.
💡Hedging Mode example
You buy a quantity of 1 EUR/USD at 1.1000. Then, you buy another quantity of 1 EUR/USD at 1.1050. Now, you have two separate positions - 1 position at 1.1000 and 1 position at 1.1050.
- Each position has its own entry price.
- You can close or modify them separately.
- If you want to reduce one specific position, you can place a market order to sell a portion of it.
💡Aggregating Mode example
- The system recalculates an average price based on trade size.
- If you buy more, the average price updates accordingly.
- If you sell, the position size reduces proportionally.
How to switch between trading modes?
- Tap on the Account Menu at the bottom right of your screen.
- Go to Settings.
- Open Trading Preferences.
- Select your preferred trading mode.
❗️ Important
You can only switch trading modes when you have no open positions or pending orders. If you have active trades, you’ll need to close them before making changes.