One-way Mode
In one-way position mode, a futures allows only one position in one direction. When the reverse opening behavior occurs, the existing position is closed before the opening is made.
For example, in a BTCUSDT futures, when you hold a long position of 1 BTC in one-way position mode and open a short position of 2 BTC, your position becomes a short position of 1 BTC.
Hedge Mode
In two-way position mode, a futures allows for holding positions in both long and short directions at the same time, and the opening behavior in the opposite direction opens positions in the opposite direction, but positions in the opposite direction do not hedge risks, and when the price moves in one direction, positions in one direction will close.
For example, in a BTCUSDT futures, when you hold a long position of 1 BTC in a two-way position mode and open a short position of 2 BTC, your position becomes a long position of 1 BTC and a short position of 2 BTC.
Features of One-Way Mode
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Positions can only be held in one direction. Traders can only choose the direction for their trades. If an order is placed in the opposite direction, the system will automatically close the current position.
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Simplified trading strategy. One-way mode means that traders focus on a specific market trend, either bullish or bearish. Traders need only monitor the market movement in one direction without considering positions in the opposite direction. This reduces the complexity of decision-making and allows for clearer trading strategy formulation.
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Suitable for quick entry. Due to the nature of one-way mode, traders can enter and exit the market more quickly without waiting to close opposite positions, thus speeding up the execution of trades.
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Focused risk and reward. Traders can concentrate on the risks and rewards of one direction, better managing and controlling risks associated with a specific direction, and more effectively setting TP/SL targets.
It is important to note that if the market trend reverses, traders holding one-way positions may miss profit opportunities or incur greater losses. Additionally, one-way mode may prevent traders from fully capitalizing on market volatility, as they can only profit from one direction.
Features of Hedge Mode
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Ability to hold positions in both directions simultaneously. Traders can hold both long and short futures positions at the same time.
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Flexible trading strategies. Traders can execute flexible trades based on market conditions and strategy needs, choosing to balance the proportion of long and short positions or adjust the size of positions according to market trends.
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Hedging risk. By holding both long and short positions simultaneously, traders can hedge risks. When the market trend is uncertain or highly volatile, holding hedged positions can reduce overall risk and minimize potential losses.
It is important to note that hedge mode may not be suitable for all traders and market conditions. It requires advanced technical analysis and risk management skills, as well as a deep understanding of the market. Traders should carefully consider their choice of hedge mode strategy to ensure they have sufficient knowledge and experience to navigate complex and changing market conditions.
How to Set Up One-Way Mode or Hedge Mode
Web
Log in on the VOOX official website. Select [Futures] in the top navigation bar to enter the trading page. Click the settings [⚙️] button at the top right corner of the trading page.
On the Preferences page, you can choose and switch between [Hedge Mode] and [One-Way Mode]. After making your selection, click [Confirm] to complete the setup.
Note:
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The APP currently only supports Hedge mode. If you wish to trade using the one-way mode, please proceed to the WEB platform.
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If you have open orders or active positions, you cannot change the position mode. You will need to cancel your orders or close your positions first, and then you can change the position mode.
Risk Disclaimer
Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material is for reference only and should not be construed as financial advice. Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. VOOX is not responsible for any losses you may incur.
VOOX attaches great importance to compliance and has strictly abided by local regulations. Please obey local laws and regulations in your country or region. VOOX reserves the right in its sole discretion to amend, change, or cancel this announcement at any time and for any reason without prior notice.
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