What Is Hedge Mode?
Hedge mode allows traders to simultaneously hold both Long and Short positions on the same contract. This mode is useful for:
- Risk management
- Advanced trading strategies
- Hedging existing positions without closing them
Widely adopted by institutional and experienced traders, hedge mode enhances risk control and adapts to rapidly changing market conditions while maintaining multiple active positions within the same contract.
Why Use Hedge Mode?
1. Manage Risk in Volatile Markets
- Hedge mode mitigates risk by maintaining opposing positions.
- Ideal for unpredictable price swings, helping traders protect investments while staying exposed to market movements.
2. Open Long & Short Positions Simultaneously
- Execute sophisticated strategies (e.g., arbitrage, market-neutral approaches) without closing existing positions.
3. Offset Potential Losses
- Example: Hold a long-term Long position while opening a Short position to hedge against short-term downturns.
How to Enable Hedge Mode on OKX
Web Instructions
- Go to Trade > Futures Trading.
- Click Settings (gear icon).
- Under Position Mode, select Hedge Mode.
- Confirm with Apply.
Mobile App Instructions
- Navigate to Trade > Futures.
- Tap Settings.
- Choose Hedge Mode in Position Mode.
- Confirm the change.
Key Notes
- Available only for derivatives trading (futures/perpetual swaps).
- Switching from One-Way Mode to Hedge Mode requires no open positions to avoid forced liquidation.
- Adjust trading strategies post-switch.
👉 Master advanced hedging strategies to optimize your portfolio.
FAQ
Q: Can I switch modes with open positions?
A: No—close all positions first to avoid forced liquidation.
Q: Is hedge mode available for spot trading?
A: No, it’s exclusive to derivatives.
Q: How does hedging reduce risk?
A: By offsetting losses in one position with gains in the opposing position.
👉 Explore OKX’s trading tools for deeper market insights.