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How is Hedge Mode different from One-Way Mode?

  • Updated

In One-Way Mode, only one position can be held under one contract. Orders on the same contract net each other out. For example, a Sell order reduces an existing Long (buy) position. 

In Hedge Mode, the Long and Short sides are treated as two independent positions with their own entry prices and PnL. 

For example, If you hold a 10 BTC Long position and place a 5 BTC Sell order:

  • In One-Way Mode: Your existing Long position would be reduced to a 5 BTC Long position.
  • In Hedge Mode: Your 10 BTC Long position remains open, and a new, separate position of 5 BTC Short is opened simultaneously. However, your net exposure would remain the same as One-Way Mode (5 BTC Long position) but you retain your original position, allowing for independent position management. 

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