How do I turn on Hedge mode?
What's Hedge mode?
Hedge Mode allows traders to hold both long and short positions simultaneously on the same contract. This mode is useful for managing risk, implementing advanced trading strategies, and hedging existing positions without closing them.
It's widely used by both institutional and experienced retail traders to enhance risk control and adapt quickly to changing market conditions—all while keeping multiple positions active within the same contract.
Why should I use hedge mode?
Helps manage risk in volatile markets: Hedge mode allows traders to mitigate risk by holding both long and short positions at the same time. In highly volatile markets, price movements can be unpredictable, and having opposing positions can help offset potential losses. This is particularly useful for traders who want to protect their investments while still participating in market fluctuations.
Allows you to open long and short positions on the same contract: Hedge mode lets traders open both long and short positions simultaneously. This is beneficial for executing more sophisticated trading strategies, such as arbitrage or market-neutral strategies, without needing to close an existing position first.
Ideal for traders using hedging strategies to offset potential losses: traders who engage in risk management often use hedge mode to balance their portfolio. For example, if a trader holds a long-term long position but expects short-term price drops, they can open a short position to cover potential losses. This ensures they remain profitable or minimize downside risks while keeping their long-term investment intact.
How do I enable hedge mode?
Follow these steps to turn on hedge Mode in your OKX trading account:
On the web
Navigate to Trade and select Futures trading
Select Settings (gear icon) in the trading interface
Locate Position Mode and select Hedge Mode
Confirm the selection by selecting Confirm or Apply
On the app
Head to Trade and enter the futures trading section
Select Settings
Find Position Mode and choose Hedge Mode
Confirm your selection to apply the changes
Note:
Hedge mode is only available for derivatives trading (futures and perpetual swaps).
If you switch from One-Way Mode to Hedge Mode, ensure you have no open positions to avoid forced liquidation.
Changes in position mode may require reconfiguration of your trading strategy.
By enabling hedge mode, you gain more flexibility in managing your trades, allowing you to hedge risks and execute advanced trading strategies more effectively.
Learn more about other trading-related topics here.