Hedging vs Netting vs FIFO: What Your EA Actually Needs
Short answerMT4 accounts are hedging (many positions per symbol, including opposite ones). MT5 can be hedging or netting (one net position per symbol). US-regulated brokers add FIFO (close oldest first). An EA that opens opposite or multiple same-symbol trades needs a hedging account.
The three models
Hedging: multiple positions per symbol, including simultaneous buy and sell — the default on MT4 and available on MT5. Netting: one aggregated position per symbol (MT5 option, common on exchanges) — an opposite order reduces the net position instead of opening a new one. FIFO: you must close the oldest position of a symbol first (US NFA rule).
What to check for your EA
- If your EA grids, martingales or opens opposite trades, you need a hedging account — MT4, or an MT5 hedging account.
- On netting/FIFO accounts, redesign the EA to manage a single net position and close oldest-first.
- Confirm the broker's trading permission and execution model in the EA Compatibility Checker.
Frequently asked questions
Does MT4 use hedging or netting?
MT4 is always hedging — you can hold multiple and opposite positions per symbol. MT5 offers both hedging and netting account types.
What is FIFO and who enforces it?
First-In-First-Out: you must close the oldest position of a symbol first. It's required by US NFA-regulated brokers.
Can my grid/martingale EA run on a netting account?
Not without changes — netting keeps one net position per symbol. Use a hedging account or redesign the EA.