# 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.

<figure><img src="/files/lcxbT0vrg0hWRcS7dNfc" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/Lxb5wQmvKaDwz3HN2KRf" alt=""><figcaption></figcaption></figure>

3. Select your preferred mode.

<figure><img src="/files/QR8fgy9LmApWWaDX5HVv" alt=""><figcaption></figcaption></figure>

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


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