# MT5 Hedging vs Netting Accounts - What It Means for Journaling

> MT5's hedging and netting account modes work very differently. Here is what each means for how your trades are recorded and how to journal them correctly.

**Tags:** mt5, hedging, netting, account-type, journaling
**URL:** https://traderjournal.app/metatrader/mt5-hedging-vs-netting-accounts-journaling

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# MT5 Hedging vs Netting Accounts - What It Means for Journaling

MT5 introduced a fundamental split in how accounts handle positions: hedging mode and netting mode. This distinction affects how your trades are recorded and how you should think about journaling them.

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## Hedging Mode

In hedging mode, you can hold multiple positions in the same symbol simultaneously, in any direction.

Example: You buy 0.3 lots of EURUSD. Later, you sell 0.2 lots of EURUSD. You now have two separate open positions - one long 0.3 lots, one short 0.2 lots. Your net exposure is long 0.1 lots, but you have two independent trade records.

Each position has:
- Its own ticket number
- Its own open price and time
- Its own stop loss and take profit
- Its own independent P&L tracking

When either position closes, it generates its own trade record in your history.

**For journaling:** Hedging mode maps naturally to traditional trade tracking. Each open-and-close pair is one "trade" with clear entry and exit points. This is the same model as MT4.

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## Netting Mode

In netting mode, only one position can exist per symbol at any time. New orders in the same symbol modify the existing position.

Example: You buy 0.3 lots of EURUSD. Now you buy 0.2 more lots. Your position becomes 0.5 lots long (same entry/open time might be blended or the original is kept). Later, you sell 0.1 lots. Your position reduces to 0.4 lots long. Later, you sell 0.4 lots. Position closes.

The history in netting mode is a series of deals (each order that modified the position), not discrete open/close trade pairs. Reconstructing what you "intended" as a trade requires interpreting the sequence of deals.

**For journaling:** Netting mode is more complex. The concept of a "trade" is less clean - was the entire sequence from first buy to full close one trade? Or was each partial reduce a separate trade?

Trader Journal's MT5 EA handles netting mode by tracking deal sequences and reconstructing meaningful position records for your journal. The journaling experience remains straightforward even for netting accounts.

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## How to Know Which Mode Your Account Uses

In MT5, go to View > Navigator > Accounts. Your account entry shows the account number. Right-click > Properties shows account details including the trade mode.

Alternatively: check with your broker when you open the account. Most retail brokers using MT5 offer hedging mode. ECN/institutional brokers may use netting.

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## Practical Recommendation

For most retail forex traders starting with MT5, hedging mode is the more intuitive choice. It works like MT4, creates clear trade records, and integrates seamlessly with journaling tools.

Netting mode suits traders who think in terms of overall position exposure rather than individual trade management, and institutional-style trading where the book is managed as a net position.

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Both modes work with Trader Journal's MT5 EA. The server-side processing handles the netting reconstruction automatically.

Download at android.traderjournal.app or ios.traderjournal.app.