Articles on: Futures Trading

What is Hedge Mode and how does it work?

Introduction

This article explains Hedge Mode on Coinlocally Futures and how it allows traders to open both Long and Short positions simultaneously on the same trading pair.

How Hedge Mode works

Hedge Mode enables you to hold two independent positions on the same pair:

  • One Long position
  • One Short position

These positions do not cancel each other out and can be managed separately.

Benefits of Hedge Mode

  • Allows advanced strategies such as hedging during volatility
  • Lets you lock in profits while keeping exposure
  • Enables independent TP/SL settings for each side

How positions behave

  • Executing a reverse order reduces the existing position only if you are in One-Way Mode
  • In Hedge Mode, reverse orders open a new position instead of reducing the existing one

Additional notes

  • Hedge Mode must be enabled before opening positions.
  • Each side (Long/Short) has its own margin and liquidation price.
  • TP/SL orders must be set separately for each position.

Common Issues

  • Traders expecting reverse orders to reduce positions while in Hedge Mode.
  • Confusion between One-Way Mode and Hedge Mode behavior.
  • Forgetting to set TP/SL for both sides.

feeling lost?

If you’re unsure whether Hedge Mode fits your strategy, our support team can help you choose the best mode for your trading style.

Updated on: 01/13/2026

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