One-Way Mode and Hedge Mode

Hotcoin perpetual futures offer two position modes: One-Way Mode and Hedge Mode. Each takes a different approach to position management and risk control within the same trading pair.

1. What Is One-Way Mode?

In One-Way Mode, positions can only be held in one direction within the same futures trading pair.

For example, if you already hold a BTC/USDT long position, you cannot simultaneously hold a BTC/USDT short position.

2. What Is Hedge Mode?

In Hedge Mode, both long and short positions can be held simultaneously within the same futures trading pair.

For example, you may hold both long and short BTC/USDT positions.

• Under Isolated Margin Mode, margin and liquidation prices for long and short positions are calculated independently.

• Under Cross Margin Mode, long and short positions share the same account margin balance, and unrealized PnL from both directions may offset each other.

3. How to Switch Position Modes?

By default, Hotcoin operates in Hedge Mode. You can switch between One-Way Mode and Hedge Mode in Futures Preferences. The selected position mode will apply to all futures trading pairs.

Before switching, make sure you have no open positions and no active orders.

4. How to Choose the Right Position Mode?

One-Way Mode uses a simpler position structure and is generally better suited for directional trading.

Hedge Mode is more suitable for hedging, arbitrage, and running multiple strategies.

Choose the mode that works best for your trading strategy and risk preferences.