Technical Definition
Position Mode (Hedge vs. One-Way)
Account setting determining if you can hold both long and short positions simultaneously (Hedge) or only one direction (One-Way).
By Crypto University Editorial
Long/Short
✦ Key Insight
Why It Matters: Hedge mode allows hedging/strategic offsetting; One-Way simplifies for directional traders but blocks opposites. How It Works: Set per contract/symbol; Hedge lets independent long/short; One-Way closes opposite when opening new direction. Common Mistakes: Switching mid-trade (af
✕ Common Misconceptions
It is often mistaken for similar sounding terms, but the technical implementation is distinct.
Detailed Explanation
Why It Matters:
Hedge mode allows hedging/strategic offsetting; One-Way simplifies for directional traders but blocks opposites.
How It Works:
Set per contract/symbol; Hedge lets independent long/short; One-Way closes opposite when opening new direction.
Common Mistakes:
Switching mid-trade (affects open positions); using wrong mode for strategy.
FAQs
Default?
Often One-Way for simplicity.
Changeable?
Yes, but may close positions on some platforms.
In Practice
“In Hedge mode on Binance, hold long BTC perp + short for spread; One-Way forces close long before short opens.”
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