Hedge Mode is a trading feature on Binance Futures that allows you to hold both long and short positions on the same contract at the same time. This is essential for traders who want more control over their strategies, especially in volatile markets.

🧠 What Does Hedge Mode Do?

In standard One-Way Mode, you can only hold one position per trading pair (long or short).

But with Hedge Mode, you can:

  • Go long (buy) on BTCUSDT

  • Simultaneously go short (sell) on BTCUSDT
    and manage both positions independently.

📈 Real-Life Example:

Suppose BTC is trading at $60,000:

  • You open a long position of +1 BTC

  • Later, you expect a pullback and open a short position of -1 BTC

In Hedge Mode, both positions remain open — with separate take-profit and stop-loss settings.

🎯 Why Use Hedge Mode?

  • ✅ Manage Risk: Hedge your long-term position against short-term volatility

  • ⚙️ Support for Grid Bots: Essential for automation-based trading

  • 🌐 Advanced Strategy Tool: Enables neutral or two-directional positioning

  • 🔒 Protect against liquidation during high volatility swings

⚙️ How to Enable Hedge Mode on Binance?

  1. Open your Binance Futures dashboard

  2. Click on the three-dot menu (⋮)

  3. Go to Preferences > Position Mode

  4. Select Hedge Mode and confirm

💡 Start with a Fee Discount

If you’re new to Binance Futures, sign up with the referral code BR3698125 to get a 10% fee discount on all your futures trades.

🔗 Register on Binance with BR3698125

⚠️ Important Notes

  • Margin is calculated separately for each position

  • Hedging doesn’t eliminate risk — it gives you more flexibility, not immunity

  • Always monitor both sides of your trade

📌 Final Thoughts

Hedge Mode is a valuable tool for traders looking to balance, automate, or protect their positions in Binance Futures. If you’re using trading bots or expecting volatility, it’s a feature you should absolutely explore.