On the MetaTrader 5 (MT5) platform, there are two types of trading accounts: Net and Gross.
Gross and Net Accounts:
Both are Margin accounts, meaning they use leverage to allow you to trade with more funds than you have in your account.
Key Difference:
In a Gross account, each trade on a financial instrument is recorded separately. This means you can have multiple open
positions, even in opposite directions, on the same instrument.
Features of a Gross Account:
- Stop Loss/Take Profit orders and Trailing Stop: These tools are available to help manage your trades.
- Separate P/L Calculation: Profit and loss are calculated individually for each position.
- Closing Positions: You can close positions using the Close position command.
- Position Reversal: To reverse a position, the current position is closed, and an opposite position of the same volume is opened.
Features of a Net Account:
Single Position: One position for each instrument.
Comparison Between Gross and Net Accounts
Feature | Gross Account | Net Account |
Number of positions on the same financial instrument | Many | One |
Opposite positions (Buy and Sell) on the same financial instrument | ✓ | ❌ |
Increasing position volume | ❌ | ✓ |
Decreasing position volume | Partial closing decreases volume. Use the Order Modification window to specify a smaller volume and click Close by Market. The specified Trade Volume is closed, and the position remains open with the Remaining Volume. | Open an opposite position of a smaller volume to decrease the Net position volume. |
Position reversal | Use the Reverse Trade Position command to close the current position and open an opposite position of the same volume. | Open an opposite position of a larger volume to reverse a Net position. |
Closing position | Close the position using the Close position command. | Close a Net position by opening an opposite position of the same volume. |
Stop Loss, Take Profit and Trailing Stop orders | ✓ | ❌ |
This comparison highlights the flexibility of Gross accounts in handling multiple and opposite positions, while Net accounts focus on consolidating trades into a single position.