Hedge Mode

What is Hedge Mode?

Hedge Mode is a trading strategy that allows futures traders to manage and mitigate market risk by holding two opposing positions — a long and a short — under the same contract simultaneously. This lets you capitalize on market fluctuations from both directions while minimizing potential losses.

One-Way Mode vs. Hedge Mode

One-Way Mode

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

Hedge Mode

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

How to Switch Between One-Way Mode and Hedge Mode

1. Open the trading interface and click the Settings button.

1. Click Position Mode to toggle between One-Way Mode and Hedge Mode.

1. Select your preferred mode.

Note: Position Mode cannot be changed while you have open positions or open orders.