Position Mode Explained: Hedge Mode vs One-Way Mode – ZOOMEX

Overview

Position Mode is a trading setting in crypto derivatives that determines how positions are managed for the same contract. Users can typically choose between One-Way Mode and Hedge Mode, depending on their trading needs and strategies.

This setting affects how positions are held, how orders are executed, and how risk is managed. In One-Way Mode, users can hold only one net position in a single direction. In Hedge Mode, users can hold both long and short positions at the same time for the same contract. Users are advised to understand the differences between these modes before trading or switching settings.

What Is Position Mode?

Position Mode is a trading setting in crypto derivatives that determines how positions are managed for the same contract. It defines whether a user can hold only one position direction at a time, or hold both long and short positions simultaneously. The selected mode affects how orders are processed and how positions are displayed in the trading account.

Types of Position Mode

One-Way Mode

In One-Way Mode, users can hold only one net position in a single direction for the same contract. If a user places an order in the opposite direction, it will reduce, close, or reverse the existing position instead of opening a new position in the opposite direction. This mode is generally suitable for users who prefer simpler and more direct position management.

Points to include:

Users can only hold one net position per contract
Buying and selling the same contract will offset or reduce the existing position
Suitable for users who want simple position management

Example:
If a user already holds a long BTCUSDT position, placing a sell order will reduce or close that long position. It will not open a short position at the same time.

Hedge Mode

In Hedge Mode, users can hold both long and short positions at the same time for the same contract. These positions are managed separately, which allows users to apply more flexible trading or hedging strategies. This mode is generally suitable for users who want to manage opposite market views simultaneously under one trading pair.

Points to include:

Users can hold both long and short positions simultaneously under the same contract
Long and short positions are managed separately
Suitable for hedging strategies, short-term trading, or flexible market views

Example:
A user can hold a long BTCUSDT position and a short BTCUSDT position at the same time.

Key Differences Between One-Way Mode and Hedge Mode

One-Way Mode and Hedge Mode serve different trading purposes and operate under different position management rules. The table below highlights the key differences between the two modes for easier comparison.

Feature	One-Way Mode	Hedge Mode
Position direction	One direction only	Long and short at the same time
Position calculation	Net position	Separate long and short positions
Order effect	Opposite orders reduce or close current position	Opposite orders can open a position in the other direction
Best for	Simple directional trading	Hedging and advanced strategies

When Should We Use Each Mode?

The selection between One-Way Mode and Hedge Mode should be determined by the user’s trading strategy and preferred method of position management.

Use One-Way Mode if:

You prefer a simpler trading experience
You typically trade in one direction only
You do not need to hedge the same contract

Use Hedge Mode if:

You want to hold both long and short positions at the same time
You apply hedging strategies
You require greater flexibility in managing short-term trades

How to Switch Position Mode

PC/Desktop

Step 1: Go to Zoomex.com and log in to your account.

Step 2: Navigate to the Futures section, then select USDT Perpetual to enter the futures trading page.

Step 3: Click the gear icon located on the right-hand side of the page.

Step 4: The Preferences panel will appear on the right-hand side. From there, click Position Mode.

Step 5: Select One-Way Mode or Hedge Mode based on your trading preference. You may also check or uncheck “Apply to all futures pairs” as needed. Once all settings have been completed, click Confirm.

App:

Step 1: Open the app and log in to your account.

Step 2: Tap Futures at the bottom of the screen, then tap the three-dot icon on the right-hand side.

Step 3: Tap Trading Preferences.

Step 4: Under Position Mode, select One-Way Mode or Hedge Mode based on your trading preference. Check or uncheck “Apply to all coin-margined futures pairs” as needed, then tap Confirm.

Important Notes

Users should take note of the following before using or switching Position Mode:

Position Mode affects how orders and positions are displayed and managed under the same contract.
The selected mode may also affect how Take Profit/Stop Loss (TP/SL) settings are applied, depending on the platform’s trading rules.
Position Mode is available only for USDT Perpetual Contract Trading.
Users are advised to understand the differences between One-Way Mode and Hedge Mode before placing orders.
Switching between One-Way Mode and Hedge Mode is not permitted while there are open positions or active orders.

Frequently Asked Questions

Q1: Can I hold both long and short positions at the same time?
In Hedge Mode, users may hold both long and short positions simultaneously under the same contract. In One-Way Mode, users may hold only one net position in a single direction.

Q2: What happens if I place an opposite order in One-Way Mode?
In One-Way Mode, an order placed in the opposite direction will reduce, close, or reverse the existing position, depending on the order size and the platform’s applicable trading logic.

Q3: Can I switch position mode at any time?
In Zoomex, users must first close existing positions and cancel active orders before changing the position mode.

Q4: Which mode is more suitable for beginners?
One-Way Mode is generally considered more suitable for beginners, as position management is more straightforward and easier to understand.

Disclaimer:
Position mode settings may vary depending on the trading product, account type, or platform rules. Before switching between One-Way Mode and Hedge Mode, please ensure that you fully understand how each mode affects order placement, position management, and risk exposure. In some cases, users may need to close existing positions and cancel active orders before changing the position mode.