# Netting of on multiple trades

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Dear All

Scenario: At 10 am I open a £3 trade to go long. I then place 6 net-off sell trades in the order book. The sell trades are 25 points apart and each net-of trade is 50p. The long trade opened at 5000, and the net-off sell trades in the order book are at: 4975, 4950, 4925, 4900, 4875 and 4850.

At 11 am I open another £3 trade to go long. I then place 6 net-off sell trades in the order book. The sell trades are 25 points apart and each net-of trade is 50p. The long trade opened at 5200, and the net-off sell trades in the order book are at: 5175, 5150, 5125, 5100, 5075 and 5050.

At 11:30 the market price comes down from 5200 to 5145. As a consequence, 2 net-off sell trades execute. As the the net-off sell trades are 50p each, the total amount netted off is £1.

Which long position has £1 netted-off against it; the £3 trade at 5000, the £3 trade at 5200, or 50p is netted off both?

Thanks

C

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