Hedge Mode

What is Hedge Mode?

Hedge Mode is a strategic approach used by futures traders to manage and mitigate market risk. This strategy allows traders to open two opposing positions—a long and a short—under the same contract, enabling them to capitalize on market fluctuations while minimizing potential losses.

Difference Between One-Way Mode and Hedge Mode

1. One-Way Mode

   In One-Way Mode, traders can hold positions in only one direction per contract. If you open a position anticipating a market move in a single direction, you cannot simultaneously open an opposite position without canceling or reducing the existing one.

2. Hedge Mode

   Hedge Mode allows traders to hold both long and short positions at the same time under the same contract. For instance, you can maintain both long and short positions in a BTCUSDT contract simultaneously. This flexibility helps traders adapt to market dynamics and manage their risk more effectively across different timeframes.

How to switch between One-Way Mode and Hedge Mode?

1. Open the trading interface and click the button of settings.

1. Click the Position Mode and you could switch from One-Way Mode to Hedge Mode.

1. Select between One-Way Mode or Hedge Mode.

Please note that Position Mode cannot be adjusted while you have open positions or open orders.