Introduction

This article explains the two position modes available on Coinlocally Futures: One‑Way (Netting) Mode and Two‑Way (Hedging) Mode. These modes determine how your positions behave when opening trades in the same or opposite direction. Choosing the correct mode helps you manage risk and execute your strategy effectively.

What is One‑Way (Netting) Mode?

In One‑Way Mode, also known as Netting Mode, each contract can hold only one unified position — either long or short.

If you open a position in the opposite direction, the system will reduce or close your existing position first, then apply the remaining size as a new position.

Example:

• You hold a 1 BTC Long.
• You open a 2 BTC Short.
• Final position: 1 BTC Short

(Your long is closed, and the remaining size becomes a short.)

This mode is simple and ideal for traders who prefer a single, consolidated position per contract.

What is Two‑Way (Hedging) Mode?

In Two‑Way Mode, also known as Hedging Mode, you can hold both long and short positions at the same time for the same contract.

Opening a position in the opposite direction does not close your existing position — it creates a separate, independent one.

Example:

• You hold a 1 BTC Long.
• You open a 2 BTC Short.
• Final positions: 1 BTC Long /2 BTC Short

These positions do not offset each other and must be managed independently.

Additional notes

• You cannot switch modes while you have open positions or active orders.
• One‑Way (Netting) Mode is simpler and preferred for directional trading.
• Two‑Way (Hedging) Mode is useful for hedging, multi‑strategy trading, or managing entries at different price levels.
• Always confirm your position mode before opening trades to avoid unexpected behavior.

Common Issues

• Forgetting which mode you're using may cause confusion when opening opposite trades.
• In Two‑Way (Hedging) Mode, long and short positions do not cancel each other — both carry independent liquidation risk.
• Switching modes requires closing all positions first.

Feeling lost?

If you're unsure which mode suits your strategy or how your positions will behave, our support team is available 24/7 to guide you step by step.

Updated on: 01/18/2026