Futures-Netting-Change-and-Order-Functionality-Handling

Title: Futures Netting Change and Order Functionality Handling
Page Content:

In order to assist traders to manage futures positions in an easy and compliant manner, we are changing functionality to ensure positions are automatically netted at the end of each trading day.

Currently, if a trader holds both long and short positions in the same futures contract, in the same account, and one of the positions has a related stop loss or take profit order, these positions will not net together at the end of the trading day. It is possible to be long and short in the same futures contract, which is non-compliant. Please refer to the recent communication regarding Market Conduct Rules for more information.

From 12 December, 2016, positions will be automatically netted using FIFO, regardless of related orders.

For example if a trader is:

  • Long +3 Light Sweet Crude (WTI) + stop loss
  • Short -2 Light Sweet Crude (WTI)

These will be netted to:

  • Long +1 Light Sweet Crude + stop loss

Note that the stop loss will still be for 3 contracts and will not be adjusted.

Full compliance is needed, not only by you as our valued IB client, but more importantly, our mutual clients. Therefore, until 12th December, you and customers must remain compliant and not hold both long and short positions in the same contract.​​

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