Types of Position Mode
In One-way Mode, you can only hold positions in one direction under one futures.
For example, if you open a short position of the BTC futures and anticipate that the price will go down in the longer timeframe, but in the meanwhile, you also want to open a long position for a shorter time frame, you won’t be able to open positions in both directions at the same time. Opening positions in both directions would result in canceling one another out.
In Hedge Mode, you can hold positions in both long and short directions simultaneously under the same futures.
For example, you can hold both long and short positions of the BTC futures at the same time.
Trading Method
In One-way Mode, you can trade the futures in the same way as spot trading. After adjusting the leverage level, you can buy or sell in the same way of spot trading to open a long or short futures position. When you want to close your position, you may click on “reduce-only orders” to make sure you have the exact amount of order to close the position.
In Hedge Mode, you need to select [Open] or [Close] before placing an order. If you would like to open a position, you may select [Open] and place an order. Please note that if you hold a long position and select [Open] to place the sell order, you cannot close the previous position but get one more short position. Thus, if you would like to close a position, you have to make sure that you have selected [Close] before placing the order.
Position Mode Switching
The position mode is hedge mode by default. You may switch to “One-way mode” to hold positions if you would like to simply use it.
You may click on the “Setting” icon on the top left and switch the position mode.
Please note that you need to close all positions before switching the position mode.
Summary
One way mode may be more suitable for the users who are used to spot trading, while Hedge mode can enhance the flexibility of your futures trading.
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