Mexc Offer Hedge
Table of Contents
Are you new to futures trading and wondering about the different types of position modes available? Well, you’re in the right place! In this article, we’ll explain the two types of position modes offered by Mexc and help you understand how they work. So let’s dive in!
Types of Position Mode
One-way Mode
In One-way Mode, you can only hold positions in one direction under one futures. For example, let’s say you open a short position of the BTC futures and anticipate that the price will go down in the longer timeframe. However, at the same time, you also want to open a long position for a shorter time frame. Unfortunately, you won’t be able to open positions in both directions simultaneously. Doing so would result in canceling each other out.
Hedge Mode
In Hedge Mode, you can hold positions in both long and short directions simultaneously under the same futures. This means you have the flexibility to open both long and short positions of the BTC futures at the same time.
Trading Method
One-way Mode
In One-way Mode, trading futures is similar to spot trading. After adjusting the leverage level, you can buy or sell in the same way as spot trading to open a long or short futures position. When you want to close your position, simply click on “reduce-only orders” to ensure you have the exact amount of order to close the position.
Hedge Mode
In Hedge Mode, things work a little differently. You need to select [Open] or [Close] before placing an order. If you would like to open a position, select [Open] and place an order. However, please note that if you already hold a long position and select [Open] to place a sell order, you cannot close the previous position but instead get one more short position. To close a position, make sure you have selected [Close] before placing the order.
Image source: blog.mexc.com
Position Mode Switching
The position mode is set to Hedge Mode by default. However, if you prefer to only hold positions in one direction, you can switch to “One-way mode.” Simply click on the “Setting” icon on the top left and switch the position mode. Keep in mind that you need to close all positions before switching the position mode.
Image source: blog.mexc.com
Summary
To sum it up, One-way Mode may be more suitable for users who are used to spot trading, while Hedge Mode can enhance the flexibility of your futures trading. Understanding the different position modes can help you make informed decisions and optimize your trading strategy on Mexc. So go ahead and explore the exciting world of futures trading!
Remember, knowledge is power, and with Mexc, you can take your trading to new heights.
Happy trading on Mexc!
Note: This article is for informational purposes only and does not constitute financial advice. Always do your own research and consult with a professional before making any investment decisions.
