Support Center/Guide for Different Position Modes

Guide for Different Position Modes

2023-09-05 07:29:00

Position Mode

Position mode refers to the method of holding positions after an order is executed. It also determines whether an order will open or close during execution. There are two primary modes: one-way mode and hedge mode.

1. One-way Mode

In One-way Mode, only one type of position (either long or short) can be held for the same contract. Profits and losses from opposing orders offset each other. In this mode, only orders that reduce the current position can be placed—new positions in the opposite direction cannot be opened. This prevents holding both long and short positions at the same time.

Example:

User A trades USDT perpetual contracts under One-way Mode. First, they place a sell order for 0.2 BTC. After the order is filled, they hold 0.2 BTC short position. Next, they place a market buy order for 0.3 BTC.

Without using the “Reduce Only” order type: The system will close the 0.2 BTC short position and then open a new 0.1 BTC long position. The user ends up with the 0.1 BTC long position.

Using the “Reduce Only” order type: The system will only close the 0.2 BTC short position and will not open a new long position.

2. Hedge Mode

In Hedge Mode, both long and short positions can be held simultaneously on the same contract. Profits and losses from each direction are calculated independently, which allows for risk hedging.

Example:

User B trades USDC perpetual contracts using Hedge Mode. First, they place a sell order to open 0.2 BTC short position. Once the order is filled, they hold 0.2 BTC short position. Then, they place a buy order to open 0.3 BTC long position. After the buy order is executed, the user holds both 0.2 BTC short position and 0.3 BTC long position at the same time.

Notes:

• If there are any open positions or pending orders in a contract, the position mode cannot be changed. The selected mode applies to all contracts.

• The “Reduce Only” order type is only available in One-way Mode. If there is no open position in this mode, the “Reduce Only” order type cannot be used.

Steps to Switch Different Position Modes

• Web Version

1. Click the 'Settings' icon on the trading interface.

2. In 'Trading Settings', select 'Position Mode’.

3. Choose either 'One-way Mode' or 'Hedge Mode', then click 'Confirm'.

Note: If you have any open positions or pending orders, a prompt will appear:

"You currently have positions/pending orders and cannot adjust the opening mode."

• App Version

1. Tap the 'Settings' icon on the trading interface to access more features, then select 'Preference'.

2. In 'Preference', select 'Position Mode'.

3. Choose either 'One-way Mode' or 'Hedge Mode'.