What is the reason behind default 'net off' value?
Joined 01/06/23 20:51
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When trading on any platform (CFD) each deal has a default trade execution type set to 'net off'. What is the reason behind choosing this value as the default one?
I'm asking because I just lost some money (again) when opening new position against another already existing position.
Imho most ppl when they see name 'new deal' they expect to open new position - if they already have an opened position on the opposite side of the market, they should know about it and the intention behind new deal is to open a hedge - not to trim an existing position.
Also, hedge is (again Imho) better solution from customer's perspective - it doesn't involve loosing money.
So why IG has decided to go for 'net off' option?
1. Leave the fiend empty but required - this will prompt a trader to make a conscious decision.
2. Make it configurable.
3. Make 'force ooen' as a default option.
4. Add another option to edit existing position (as ame way as you can edit limit/stoploss) - for situations such as closing only fraction of existing position...
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