When trading futures, there are two position modes to choose from—''Hedge Mode'' and ''One-way Mode''. The main difference is that ''Hedge Mode'' allows you to hold both long and short positions simultaneously for the same futures where ''One-way Mode'' only allows holding a position in one direction—you can only be long or short, not both.
One-way Mode:
In this mode, you can simply buy or sell to place orders. For each future, you can only hold a position in one direction at a time—long or short, not both. If you open a new position in the opposite direction, it will offset and merge with your existing position.
Hedge Mode:
In this mode, you can use four order types—open long, open short, close long, close short. This allows you to simultaneously hold both long and short positions for the same futures. The margin required, leverage, and position sizes are tracked separately for each direction, providing a risk offset.
To set your preferred mode:
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On LBank App
- Open the app and go to the Futures tab on the bottom navigation bar.
- Tap the three-dot icon in the top right and select ''Preferences''.
- Under the ''Mode''menu, choose either ''Hedge Mode'' or ''One-way Mode''.
- If ''Hedge Mode'' is enabled, you can buy to open longs and sell to open shorts, holding both directions.
- If ''One-way Mode'' is selected, you can only buy to open longs or sell to open shorts.
*Note: You cannot change modes if you already have open positions or pending orders.
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On the LBank Website
- Log into your LBank account and click on ''Futures'' in the navigation bar.
- On the right side, locate the Position Mode option. Select either ''Hedge Mode'' or ''One-way Mode''
- The key difference is whether you want to be able to hold both long and short positions simultaneously (Hedge Mode) or just one direction at a time (One-way Mode).
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