The Differences between One-way Mode and Hedge Mode

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.
The Differences between One-way Mode and Hedge Mode
The Differences between One-way Mode and Hedge Mode

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 as 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 orders to close the position.

Trading Method - One Way Mode
Trading Method – One Way Mode

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.

Trading Method - Hedge Mode
Trading Method – Hedge Mode

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.

Closing Thoughts

The one-way mode may be more suitable for the users who are used to spot trading, while the Hedge mode can enhance the flexibility of your futures trading. You may try both modes to find the best for your futures trading usage.

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The content of this webpage is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. Investment involves risk.

Please note that the information and data above are cited from third-party sources & whitepapers and do not represent MEXC. Please refer to direct sources for more details. This is not financial advice and does not constitute an offer or solicitation to offer or recommend any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. Investment involves risk.

This disclaimer informs readers that the MEXC Creator’s content, views, thoughts, and opinions expressed in the articles belong solely to the creators and authors, and not to MEXC Global itself. MEXC Global doesn’t give any investment recommendations or advice.

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