How to Enable Hedging Mode

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Hedging mode allows traders to maintain both long and short positions simultaneously within the same contract. This method is particularly useful for risk management, implementing advanced trading strategies, and protecting existing positions without closing them. It is widely adopted by institutional and experienced retail traders to improve risk control and adapt to rapidly changing market conditions while keeping multiple positions active.

Benefits of Using Hedging Mode

Steps to Enable Hedging Mode

Follow these steps to activate hedging mode on your trading account.

On the Website

  1. Navigate to the Trade section and select Futures trading.
  2. Click on Settings (gear icon) within the trading interface.
  3. Locate Position Mode and choose Hedging Mode.
  4. Confirm your selection by clicking Confirm or Apply.

On the Mobile App

  1. Go to the Trade section and access the futures trading area.
  2. Select Settings.
  3. Find Position Mode and switch to Hedging Mode.
  4. Confirm your choice to apply the changes.

Important Notes:

By enabling hedging mode, you gain greater flexibility in managing your trades, allowing you to protect against risks and execute advanced strategies more effectively.

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Frequently Asked Questions

What is hedging mode in trading?
Hedging mode enables traders to hold both long and short positions in the same contract simultaneously. It is used to manage risk, especially in volatile markets, and allows for more complex trading approaches without closing existing positions.

Who should use hedging mode?
This mode is ideal for intermediate and advanced traders who employ risk management strategies or engage in methods like arbitrage. It is not recommended for beginners due to its complexity.

Can I switch to hedging mode with open positions?
No, switching position modes while having active positions can lead to forced liquidation. Always ensure all positions are closed before changing the mode.

Which instruments support hedging mode?
Hedging mode is available for derivative products, including futures and perpetual swaps. It is not applicable to spot trading.

Does hedging guarantee profit?
No, hedging is primarily a risk management tool. It helps minimize potential losses but does not ensure profits. Market conditions and strategy execution play crucial roles in outcomes.

How does hedging differ from one-way mode?
In one-way mode, traders can hold only one position direction per contract. Hedging mode allows multiple positions in both directions, offering greater flexibility for risk management and strategy implementation.