What Are One-way Mode and Hedge Mode

The position mode determines whether a trader can hold both long and short positions simultaneously under the same trading pair.

CoinEx Futures supports two position modes: “One-way Mode” and “Hedge Mode”. Traders can select the mode that best fits their trading strategies.

 

What is One-way Mode

In One-way Mode, only one position (either long or short) can be held on the same trading pair at any given time.

Both buy and sell orders will affect the net exposure and size of the position on that trading pair.

1. Trading Rules

(1) When no open position is held:

  • Buy → Open a long position
  • Sell → Open a short position

(2) When holding a long position:

  • Buy → Add to the long position
  • Sell → Partially or fully close the long position

(3) When holding a short position:

  • Sell → Add to the short position
  • Buy → Partially or fully close the short position

(4) When the quantity of a reverse order exceeds the current position quantity:

  • The existing position may be fully closed upon execution;
  • The remaining portion will be used to open a new position in the opposite direction.

2. Applicable Scenarios

One-way Mode is suitable for traders who base their decisions on directional bets and adjust their net positions directly through buying and selling.

 

What is Hedge Mode

In Hedge Mode, both long and short positions can be held simultaneously on the same trading pair. Positions in both directions are tracked and managed independently.

1. Operation Types

(1) Buy to Open Long → Initiate or add to a long position

(2) Sell to Open Short → Initiate or add to a short position

(3) Buy to Close Short → Partially or fully close a short position

(4) Sell to Close Long → Partially or fully close a long position

2. Applicable Scenarios

Hedge Mode is suitable for traders who aim to hold both long and short positions simultaneously to hedge risks or manage dual-directional positions independently.

 

Differences Between One-way Mode and Hedge Mode

ItemOne-way ModeHedge Mode
Position StructureOnly one net position (long or short) can be held on the same trading pairBoth long and short positions can be held simultaneously on the same trading pair
Order Placement

Buy

Sell

Buying and selling directly affect the net position

Buy to open long, Buy to close short
Sell to open short, Sell to close long
Traders must identify the directions when opening or closing a position
Opposite Order PlacementThe existing position may be partially or fully closed, or a new position in the opposite direction may be initiatedOpening and closing of positions are independent
Common Use CasesTrend trading, net position in one directionTwo-way hedging, isolated directional bet management

 

Margin and Leverage Management Rules

1. Margin Mode

(1) Hedge Mode: Long and short positions on the same trading pair share the same margin mode.

(2) One-way Mode: At any given time, only one margin mode (either Cross or Isolated) is applied to one trading pair.

2. Leverage (Cross Margin)

Long and short positions on the same trading pair share the same leverage ratio, and any adjustment of leverage applies to all cross positions on that trading pair.

3. Leverage (Isolated Margin)

(1) Hedge Mode: A separate leverage ratio is applied to each side respectively.

(2) One-way Mode: Only one leverage ratio is applied.

4. Position Tier & Margin Calculation

(1) Hedge Mode (Cross Margin): The position tier is determined by both long and short positions on the same trading pair. Allocated Margin and Maintenance Margin for positions of each side are calculated separately and do not offset each other, even if long and short positions hedge against each other.

(2) Hedge Mode (Isolated Margin): The position tiers for long and short sides are determined separately. Allocated Margin and Maintenance Margin for positions of each side are calculated independently.

(3) One-way Mode: The position tier is determined by the net position on that trading pair. The system calculates the order volumes on both sides separately, taking the larger of the two as the basis for position tier.

 

How to Switch Position Modes

You can switch position modes in Futures Settings. This change takes effect across all trading pairs globally (including USDT-margined and Coin-margined contracts).

1. Before Switching

You can only switch position modes when there are no open positions and no active orders across all trading pairs.

If any position or order exists, it must be closed or canceled.

2. Notes

Switching position modes does not automatically convert the side of existing or executed orders. You may view your order history as is before the switch.

 

Examples

ScenarioMarket PreferenceActionFinal Position
One-Way Mode

Currently holding 1 BTC long;

plan to sell 1.5 BTC

First close 1 BTC long

Then open 0.5 BTC short

0.5 BTC short
Hedge Mode

Currently holding 1 BTC long;

plan to sell 1.5 BTC

Open 1.5 BTC short via short-selling

Hold both long and short positions

1 BTC long + 1.5 BTC short


 

Note: While Hedge Mode can be used for risk hedging, holding positions on both sides incurs trading fees and funding fees, respectively, and each side occupies margin separately. Holding positions on both sides does not eliminate trading risks.

 

Notes

1. In Hedge Mode, please confirm whether you intend to open or close a position and check the trading side before placing the order.

2. The quantity of limit or market close orders cannot exceed the available closable size on that side.

3. Under Cross Margin Mode, all positions using the same margin asset share collective risk. Any change to a position, order, or account funds may affect the overall risk ratio under that margin asset.

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