FTMO Ends FIFO: What the Switch to Hedging Accounts Means for Traders in 2026

Few things derail a trading plan faster than an execution rule you didn't know existed. For years, FTMO traders who tried to hold a long and a short position on the same instrument at the same time simply couldn't — the platform's Netting execution model and FIFO closing order didn't allow it. That changed at the start of 2026. FTMO moved its accounts to a Hedging execution model, and the FIFO restriction that shaped how thousands of traders managed open positions quietly disappeared.

If you're on an older FTMO account, or you're evaluating whether to start a challenge now, understanding what this change actually does — and what it doesn't — matters more than the headline suggests. Here's what's confirmed, what it means for strategy, and what's still unclear.

What Changed: FTMO's Move from Netting to Hedging Accounts

What is the difference between a Netting account and a Hedging account?

A Netting account only allows one net position per instrument. If you're long 1 lot of EUR/USD and you open a short 1 lot on the same pair, the platform automatically nets those two trades against each other — the short doesn't sit alongside the long, it cancels it out. A Hedging account removes that restriction. You can hold a long and a short position on the same instrument at the same time, each tracked and closed independently.

This is a structural, platform-level distinction, not a cosmetic setting. It affects how your open positions are represented on the account, how margin is calculated, and how you're able to manage risk on offsetting trades.

When did FTMO's execution type change take effect, and which accounts were affected?

According to FTMO's own trading updates published through its OANDA-run platform in January and February 2026, all FTMO Challenges purchased after January 30, 2026, at 01:00 were created with a Hedging account type instead of the previous Netting type. Traders on existing Netting accounts had until Friday, February 13, 2026, at 23:00 to either request a manual switch to Hedging or have their accounts automatically migrated once all open positions were closed.

After that date, remaining Netting accounts were converted, with any open positions closed at the latest available market price before the switch.

In short: this wasn't an optional feature rollout. It was a firm-wide transition applied to new and existing accounts within a roughly two-week window.

Understanding the End of the FIFO Rule

What is the FIFO (First-In, First-Out) rule, and why did it restrict traders?

FIFO, or First-In, First-Out, is a closing-order rule tied to Netting accounts. When a trader had multiple open positions on the same instrument — for example, three separate long entries at different prices — FIFO required that the oldest position be closed first when reducing exposure.

The trader couldn't choose to close a more recent or more profitable entry ahead of an older one. Combined with Netting's automatic offsetting, FIFO meant traders had limited control over exactly which trade closed when, especially if they'd built a position in stages.

How does removing FIFO change the way open positions are closed?

Under Hedging execution, positions on the same instrument are tracked individually rather than netted, and closing order isn't dictated by FIFO. A trader can choose which specific position to close, regardless of when it was opened.

For someone who scales into a trade with multiple entries, or who wants to close a losing leg while keeping a profitable one open on the same instrument, this is a meaningful gain in control compared to the old Netting-plus-FIFO structure.

What Hedging Accounts Actually Allow Traders to Do

Can traders hold both long and short positions on the same instrument now?

Yes. Under the Hedging model FTMO rolled out, a trader can hold simultaneous long and short positions on the same instrument.

This is the defining feature of hedging execution and the main capability that Netting accounts didn't support. Positions are not automatically offset against each other — each is tracked and can be closed on its own terms.

How do margin requirements differ between Netting and Hedging execution?

According to FTMO's published trading update, margin is required independently for both the long and short position when both are open on a Hedging account.

On a Netting account, since opposing trades offset automatically, margin was effectively calculated on the net exposure. Under Hedging, because both sides of a position can exist at once, a trader should expect margin usage to reflect both open positions rather than just the net difference between them.

This is particularly important for traders who plan to run explicit hedges rather than simply trade directionally, as margin usage should be factored into position sizing and overall risk management.

Why FTMO Made the Switch

FTMO's public communications about the change describe the technical mechanics — the account type, the FIFO removal, and the migration timeline — but don't include a detailed public statement of the underlying business rationale.

Based on available information, the shift lines up with two things happening around the same period: FTMO's broader platform overhaul following its acquisition of OANDA, completed December 1, 2025, and a general industry move visible across several prop firms' platform updates in recent years toward execution models that give traders more granular control over positions.

What trading strategies benefit most from hedging-enabled execution?

Strategies that rely on holding offsetting or partially offsetting positions benefit most directly.

This includes:

• ●Traders who want to hedge a core directional position with a smaller opposing trade during high-volatility windows.
• ●Traders who scale into positions in stages and want to manage each entry independently.
• ●Traders who want to close individual positions without affecting other positions on the same instrument.
• ●Traders using more complex position-management techniques that require simultaneous long and short exposure.

It's worth noting that FTMO's broader rulebook still prohibits certain hedging-adjacent strategies. Arbitrage and hedging across multiple separate FTMO accounts, for instance, remain against the rules according to FTMO's terms.

What changed is same-account, same-instrument execution flexibility — not the firm's overall stance on prohibited trading strategies.

Does this change align FTMO with broader industry trends among prop firms?

Some prop firms already operated hedging-capable accounts before this change, while others still run Netting-only or apply their own restrictions on same-instrument opposing positions.

Based on publicly available information, there isn't strong evidence of a single unified industry-wide shift happening simultaneously. Execution models still vary firm by firm and sometimes account-type by account-type within the same firm.

Traders comparing platforms should check each firm's current execution model directly rather than assuming FTMO's change reflects a universal standard.

What Existing and New Traders Need to Do

Were existing accounts automatically migrated to Hedging execution?

Yes, with a caveat on timing.

FTMO's trading updates state that any account still running Netting execution after the February 13, 2026, deadline was automatically switched to Hedging, following closure of any open positions at the latest available market price.

Traders who didn't take action by the deadline didn't lose access. Their account type simply changed on the firm's schedule rather than their own.

Can traders on Netting accounts still request a manual switch?

During the transition window — through February 13, 2026, at 23:00 — FTMO allowed traders to contact support directly to request an early switch to Hedging, provided all trades on the account were fully closed and remained closed until the change was completed.

Since the deadline for the original migration window has passed, traders with questions about their current account's execution type should check their account dashboard or contact FTMO support directly, since the automatic migration should already have applied to any account still on Netting.

Practical Impact on Trading Strategy and Risk Management

Does hedging execution change how drawdown or daily loss limits are calculated?

FTMO's daily loss and maximum loss limits are calculated based on account equity — the account's balance plus the floating profit or loss of all open positions — rather than by referencing which execution type, Netting or Hedging, is in use.

FTMO's own trading updates about the Hedging switch do not describe any change to how these percentage-based drawdown limits are calculated.

Based on available information, there's no indication the underlying drawdown math changed. What changed is how positions on the same instrument are tracked and closed, which indirectly affects a trader's exposure and therefore their equity curve, but not the drawdown formula itself.

Traders should still confirm current drawdown mechanics directly against their account dashboard, since risk-rule details can be updated independently of execution-type changes.

Are strategies like grid trading or partial hedging now viable under FTMO's rules?

Hedging-enabled execution makes certain mechanics — like holding a long and short on the same pair, or managing multiple staggered entries independently — technically possible in a way they weren't under strict Netting and FIFO.

That said, "technically possible under the new execution model" is different from "permitted under FTMO's trading rules."

FTMO's broader terms still restrict specific strategies such as cross-account hedging and certain forms of arbitrage. Traders considering grid-style or hedging-heavy approaches should review FTMO's current rulebook in full rather than assuming the execution change alone clears those strategies for use.

Summary

FTMO's move from Netting to Hedging execution — and the resulting end of the FIFO rule — is a genuine structural change, not a minor platform tweak.

New challenges purchased after January 30, 2026, were created with Hedging execution from the start, and existing Netting accounts were migrated by mid-February 2026, either by trader request or automatically.

The practical effect is more control: traders can now hold long and short positions on the same instrument simultaneously and choose which position to close, rather than being bound by automatic netting and a first-in, first-out closing order.

What hasn't changed, based on available information, is the underlying math behind FTMO's daily and maximum drawdown limits, or the firm's broader restrictions on certain hedging-adjacent strategies across multiple accounts.

Traders should treat this as an execution-flexibility upgrade rather than a rules overhaul, and confirm current account-specific details directly with FTMO before adjusting a trading strategy around it.

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