WOO X offers two types of position modes when trading perpetual pairs: one-way mode and hedge mode.
One-way mode allows users to engage in trading by holding positions in a single direction under a specific perpetual pair.
Hedge mode, on the other hand, allows users to simultaneously open long and short positions for the same perpetual pair. This mode is particularly beneficial for traders looking to implement sophisticated trading strategies in different time frames.
▶ How to switch between one-way mode and hedge mode?
Both one-way mode and hedge modes are accessible in either single-symbol and multi-symbol workspaces. To switch modes, simply select the cog wheel setting icon at the top right corner of the order entry widget after choosing a perpetual pair.
*Note: Position mode changes are not permitted if there are any existing positions or pending orders. Please close any of these positions or pending orders before switching position modes.
Select the desired position mode.
▶ How to create an order with hedge mode?
Let’s take the ‘Order entry X’ widget as an example.
To create an order in hedge mode, you need to first select the appropriate action - either opening a new position or closing an existing one by clicking on the relevant tab on the order entry widget.
For opening positions:
- If you’re looking to initiate or expand a position, use the Open tab.
- Click Open Long to increase your long positions, or Open Short to do the same for a position.
For closing positions:
- To exit or downsize a position, use the Close tab.
- Use Close Long to decrease to completely close a long position. Similarly, Close Short is for reducing or closing a short position.
- Note that close orders are by definition reduced-only orders.
▶ How to view positions currently opened under one-way or hedge mode?
Once you’ve opened your positions, you will be able to view them in the portfolio section. A green bar next to the instrument indicates a long position, while a red bar indicates a short position.
In this section, you can also find details about the margin and maintenance margin associated with your positions. Margin is the initial capital required to open a position. Maintenance margin, however, is the minimum amount of margin required to keep your positions open.
In the context of hedge mode, initial and maintenance margin calculations are based on the larger notional value of your long and short positions per symbol, offering greater margin efficiency.
To put this into perspective, let's consider an example: Suppose you have a portfolio that is fully hedged with 1 BTC-PERP long and 1 BTC-PERP short. The total margin requirement for this combination of positions would be identical to the margin required for a single 1 BTC-PERP Long position if you were operating under one-way mode. In this example, the total margin requirement is allocated equally between the two fully hedged positions under hedge mode.
Q: Can I use hedge mode on one symbol and one-way mode on another?
A: No, position mode is an account-wide setting and applies to all symbols. Position mode changes are not permitted if there are any existing positions or pending orders. Please close any of these positions and pending orders before switching position modes, or create a subaccount for a different mode.
Q: How is the margin calculated for hedged positions?
A: Margin for hedged positions is calculated based on the larger notional value between the long and short positions for each symbol.
Q: Is liquidation possible with fully hedged positions?
A: Yes, liquidation can occur when there is a large price movement, as the maintenance margin of your hedged positions would increase with rising mark prices.
Q: Can I set separate TP/SLs for my long and short positions?
A: Yes, Take Profit (TP) and Stop Loss (SL) orders can be set independently for both long and short positions.