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Net off & force open


coopjames

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19 hours ago, coopjames said:

The advantagaes, disadvantages please, of "Net off & force open", in finding trade direction!

hey @coopjames 

Net off and force open refer to how we handle the trade in relation to other trades you have open at the time. If you have a long trade (buy) open of say 10, and open a short (sell) for 3, force open would make both the 10 long and 3 short reflect on your account. If you choose Net off in the same example as above the sell trade would 'eat' into the original 10, and leave you with a single trade for 7 long (buy). 

Trade direction can't be aided by the above. Hope this helps. 

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7 hours ago, backwardation said:

Net off does have advantages and there is a real difference.

example:  You have a long term position that is very profitable and you expect it to move much more.  However there is a serious risk that it may reverse (or at least experience a lot of volatility) due to the NFP reading.  You can hedge your position by opening the reverse position using netoff an hour before the NFP.  You can then sit on the sidelines for a while until you see a clear direction or until the dust settles.  There are also strategies that strictly work in net off.

Also if you are an adrenaline junkie oil gambler/trader like me, netoff can save you from a margin call or a blown position.

I said this entirely backwards.  Sorry!  Here's what it should say:

Force Open does have advantages and there is a real difference.

example:  You have a long term position that is very profitable and you expect it to move much more.  However there is a serious risk that it may reverse (or at least experience a lot of volatility) due to the NFP reading.  You can hedge your position by opening the reverse position using Force Open an hour before the NFP.  You can then sit on the sidelines for a while until you see a clear direction or until the dust settles.  There are also strategies that strictly work in net off.

Also if you are an adrenaline junkie oil gambler/trader like me, Force Open can save you from a margin call or a blown position.

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Net off does have advantages and there is a real difference.

example:  You have a long term position that is very profitable and you expect it to move much more.  However there is a serious risk that it may reverse (or at least experience a lot of volatility) due to the NFP reading.  You can hedge your position by opening the reverse position using netoff an hour before the NFP.  You can then sit on the sidelines for a while until you see a clear direction or until the dust settles.  There are also strategies that strictly work in net off.

Also if you are an adrenaline junkie oil gambler/trader like me, netoff can save you from a margin call or a blown position.

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This is a prominent question for me also as a heavy user of the API, I feel that the documentation for this is lacking (On the API side) What do we need to set in the API to be able to hedge? I presume the first trade we would need to set Force Open to False, Then the hedge trade Force Open to True? However...

[Constraint: If a limitDistance is set, then forceOpen must be true]
[Constraint: If a limitLevel is set, then forceOpen must be true]
[Constraint: If a stopDistance is set, then forceOpen must be true]
[Constraint: If a stopLevel is set, then forceOpen must be true]
[Constraint: If guaranteedStop equals true, then set only one of stopLevel,stopDistance]

Does this mean that I cant hedge if I want to use a Guaranteed Stop? 

 

Perhaps someone from IG can chime in? 

Edited by TheGuru12
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