What is One-Way Mode?
One-Way Mode refers to a specific position mode setting. When you set your position mode to One-Way Mode, you can only hold one direction, either long or short. This mode offers a straightforward way to manage your position, allowing you to change your position size and direction with ease.
What is Hedge Mode?
Hedge Mode is an alternative position mode setting. When activated, you can simultaneously hold two positions in opposite directions (both long and short). This mode is beneficial for users wanting to lock in unrealized P&L without closing their positions.
Liquidation mechanism for One-Way Mode and Hedge Mode
Regardless of the position mode you choose, you must maintain collateral as position margin. Even in a fully hedged situation in Hedge Mode, collateral is still required. Should your margin balance value fall below the required position margin, your positions will be liquidated.
In Hedge Mode, if you hold opposite positions in a market, the liquidation price will be the same for both the long and short positions. Your positions will be liquidated if the mark price reaches the liquidation price.
Partial liquidation in Hedge Positions
In the event of partial liquidation during Hedge Positions, the system will prioritize closing your fully hedged positions. If your margin remains insufficient after closing all fully hedged positions, the liquidation engine will continue to close additional positions.
Position Margin mechanism in Hedge Mode
The position margins differ between fully hedged positions and non-fully hedged positions, even if the size is the same. Please exercise caution when opening or closing your positions, especially if these actions alter your hedged status (fully hedged or non fully hedged).
Limitations on switching position mode
You are not allowed to switch your position mode when you have any positions or active orders in the market.
*All the position mode settings are independent, you can select different position modes in different markets*